Most of us thrifty diy types know how to make a padded hanger from a wire one using old t-shirts cut into strips. But, did you know that you can also use all those bits of fabric scraps from sewing and craft projects?
Just cut the scraps into strips; you don't need to worry about fraying. If the scraps aren't long enough, just knot together.
When you have several strips, just braid around the hanger. You can keep knotting additional strips until your hanger is wrapped. The knots just add to the padding.
You need to keep pushing the braid towards the "done" part of the hanger.
Here is a done one:
For a cleaner, more finished look, you could substitute ribbon or cord, but then it wouldn't be quite as thrifty. I do have one or two made with stretchy fabric tubing, but I actually prefer the wacky, sticky-outy put-together look of fabric scraps.