HOW TO RECYCLE OLD TSHIRTS INTO YARN:
Step 1: Begin by cutting the bottom seam and the top part of the shirt.
Step 2: Next, take the tube from the middle and fold in half-leaving a 1-inch margin at the top
Step 3: Fold again, up to the margin.
Step 4: Now, cut sections up to the margin. You can make them whatever width you like. Mine are about half an inch. Continue to the end.
Step 5: Unravel.
Step 6: Find something to lay your skirt/squid on. I’m using a rolled up blanket, I’ve also used a jar. Use whatever’s around.Cut slits on a diagonal. Keep going until you reach the end.
Source + more pictures at http://www.sustainlane.com/reviews/how-to-recycle-t-shirts-into-yarn/A48NT3FSZAANIR1HNU9TQPLH2C9O