I have spent the past month battling mountians of scraps. I do cut into useable sizes like Bonnie Hunter and box by size and color. People give me them because they know I am a scrap quilter.
However, it gets to the point where it is choking me and all I did was sort scraps and get mentally crazy trying to make decisions. That is where the advice to not hang onto what I don't need or is it stopping me from actually sewing and making quilts, which I love, has to be driven home.
At some point you have to say enough and stop being buried. I had a friend go through the boxes and get rid of any uglies (like all that mauve, baby blue prints from the 80s). Then she sorted by color. Then I cut what was easily cut on my Accuquilt or stripology ruler, and got rid of the rest. I can now park my car in the garage and I feel a huge load off my mind. I still have boxes with what is precut sizes by colors that I can pull from.
Don't let the scraps prevent you from what you love to do- life is so short- do you really want to spend your time sorting and being buried with scraps or making quilts?