I know this is not the thriftiest tip ever submitted but it works great for me. I had several sets of King size sheets where the bottom sheet was "pilly" and the elastic all stretched out and quite bothersome. So I went to Walmart and bought 2 different color fitted king size sheets at $12.00 each to replace those.
I got 2 new sets of sheets for $24.00 less than the cost of 1 new set of sheets at Walmart. I know there are ways to fix the old bottom sheets, but I don't sew and the elastic is expensive so this was a quick fix for me. I picked 2 colors that were most predominant in the sets and viola, 3 new sets.
I love this site and love all the great tips that are submitted. I will use the old worn out sheets in the garden for frost cloths or painting drop cloths or something so they won't go to waste.
I usually cut mine down and sew into pillowcases. I never seem to have enough pillowcases. When they wear out, I cut a small slit in the closed end, slip over a hanger, and use as a dust cover for my out-of-season clothes. They are the perfect size, are washable, and work much better than the plastic ones you buy from the store.
I made pillow cases out of the bottom sheets that were stretched out like that. I just measured the other cases I have and cut them a bit larger and sewed them by hand. I used them for years. Now that I have a machine I use it to sew with.
You might also want to donate your old sheets to a local pet center like SPCA - the animals get very cold at night and they don't mind the sheets that have pilling.
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