There are quite a few ways to reuse shredded paper and prevent it from polluting the environment. Here are a few ideas;
Packing Material
Try using shredded paper as packing material. When shredded, paper becomes much smaller, and can easily fill the empty spaces in boxes! When moving items, try packing the empty space in the box with shredded paper; the stuff in the box will stay still, reducing the change of damage.
Animal Bedding
Bagging shredded paper creates a very comfortable bed for animals in sheds and garages. Papers are known to be biodegradable and therefore will even decompose quite well. Save money on purchasing animals beds, while at the same time protecting the environment. You could even sell the paper to neighbours at a low price, and earn yourself back some money.
Fuel Briquettes
Recently, briquettes have grown into a very popular form of fuel. It reduces the amount of trees being cut down and used as firewood, while at the same time reducing the use of other non-renewable resources such as oils.
Ash
Ash is a remarkably useful commodity. It can be used as a fertilizer, or in an artistic medium, or even as an abrasive in washing. Try burning your shredded paper in a closed furnace to produce ash, which can then be used in these ways, and many more.
These and other ways of reusing shredded paper will not only earn you some cash but also even help save the environment.