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[Regal Bee]

Our towels get a real workout with  pets. I usually repurchase about every two years. Give the old ones to the vet and also my husband to use in the garage.

[RedTop]

I sew matching towels together and make bath mats out of them, instead of buying rugs.   We only need something to step out of the shower on anyway, and these work great; very solid and absorbent.   When I tire of them, they go in the outside dog houses in the winter, and from there in the garbage.   

[Katcat1]

You can use old towels as rags for washing baseboards or marks on the walls, scrubbing the tub, etc.  I replace towels when they lose their absorbency.  I just bought a few white bath towels and hand towels from Nate Berkus at Target.  For the money they worked out quite well.  I love white towels.