A lot of people here made placemat purses a while back- so fun and easy and cheap!
Tonight I found this link for purses made from dish towels. Brilliant!
Anything goes with these bags, pick the size and shape that you like and just use the tea towels for your fabric. The finished edges make everything go faster, and the prints/colors that you can pick from are amazing. What could be more fun?
Some pattern and style ideas are here http://iwannanewbag.blogspot.com/
Wendy
