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Disposal of used clothing, too old or damaged to donate to charity
There are loads of clothes recycling boxes all over the place.
What you consider worn and damaged may not be to a charity. They will take most textiles. And the larger charities will have ways to dispose of stuff that they consider bad quality. e.g. they can sell in bulk or even give away to merchants who specialize in waste textiles.
Otherwise clothing should just go in general waste.
Fabric gets sold for recycling. Even rags are worth something.
Don’t your local container park have a fabric recycling bank?