What do you do with your magazines and catalogs?  

well my hubbys complaint would be all my craft stuff that is near my chair where i sit, but as for magazines, i lucked out once and bought a large fruit crate that i have standed up on its side (i use it as a magazine rack and also an end table beside the couch. (i got it at a grocery stores when they were getting rid of them)
my point is, think outside of the box!

Take all the mags to a school once a month. They use them for a lot of things. Art classes are always looking for mags.

Since you say the basket didn't work I would get more racks and as you said line them up on the bottom. You can find them in different colors. Find ones that match your decore.

I do several things with my magazines.

First with my home and garden types I tear out the pages I want to keep and put them in 3 ring binders to save.

Same with my parenting magazines when I find interesting articles that I want to keep.

Other types I rip out pages to bring to work for the children to practice their cutting skills and put together collages.

Then the rest I take to the recycling center to be recycled.

I work with kids, and so we use them for collages, or I use some for scrapbooking, if there are too many, they get recycled, I only get a couple magazines, and just thought, you could call the companies of some of those catalogs and cancel getting them, the same thing is online!

oh they do pile up fast, don't they? my son has a bad habit of looking through several at a time and then leaving them about - an unsuspecting foot in a dimly lit room can really slide on a magazine carelessly left strewn on the floor!

I think a good option for ridding self of mags is to take them to the library - ours has an area put aside for such a purpose and folks can come in and take as many as they wish for free.

Some times you can sell that to some second hand book shop! and you can also try to do that online, like sell on the Ebay!

I recycle the old ones that i never use or need, i always look through the magazines about 100 times before i throw them out so i always get my moneys worth.