I finally learned to either serge the raw edge or overcast the raw edge with a long, narrow zigzag stitch before washing.
I lose - at the most - about 1/8 inch of fabric when I zigzag the edges - none when I overcast if I remove the stitching.
Two other advantages: I can tell which fabrics have been washed - or not
It totally eliminates all those threads and wads and fabric loss.