When I make a gift basket, I use the shredded paper from my shredder for filler. Sometimes I shred some colored paper, a comic strip, or some left over gift wrap and use it on top of the plain shredded paper for a fancier basket.
If you have a strip shredder you can go an extra step and curl the paper. You can curl the paper just like you do to ribbon with the edge of a scissor. I used the edge of a ruler to this instead of scissors so I wouldn't cut the paper or myself!
I keep a separate bag for shredding gift wrap that I can use for gift bags and baskets so it looks nice all the way through the bag or basket. If you don't have gift wrap to shred you can use colorful junk mail and magazines.
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