Please avoid shredding your paper as it shortens the life of paper fibers (meaning they can be recycled fewer times). But if you do need to shred, take your sensitive documents to a shred event, as they will be securely shredded, after which they will be recycled into products like brown paper bags, toilet paper, tissue, and newsprint.
Shredded paper can also go in compost, BUT it must have no metal (staples, clips) or plastic (windows, shiny coating). Also, do not shred (or recycle) retail store receipts; put them in the trash.