I use the plastic bags I bring groceries home in and tie them up when full. Easier to handle and dispose of... NO COST recycle
I also save plastic and paper trash bags from the store to put trash in or use for packaging or to throw away kitty litter in. Perhaps the only thing keeping people from using only small plastic bags as trash bags is the size. However, if the smaller size doesn't bother you, you could switch to using only small plastic bags or paper bags to throw away trash in. It's an idea I've thought about often. You can also find large plastic trash bags for $1 at the Dollar Tree and other dollar stores now. You could purchase a box at $1 and use those only when you have something large to throw away or several medium sized items that may not fit into the smaller plastic bags.