I saw this tip on Fonn's and Porter's website :
Saving Selvages
Instead of wasting the selvage edges when I trim my fabric, I save them and make hot pads and rag rugs. I crochet a circle or an oval using a size J or K crochet hook and a single crochet stitch. It's easy, and the results are both pretty and useful.
Joanne Ganaden, Eleele, HI
Annie