Bounce, bounce, bounce, BOUNCE!
Diffusers are all well and good, but they cost money. For real budget lighting, bounce the light off stuff you've already *got.* Mirrors. Walls. Ceilings. White shirt boxes. The more it bounces and the farther it bounces the more diffuse it will get.
You can think about diffusers too, though. Like the other poster said, use old sheets. Use waxed paper. Whatever. But keep it *off* the hot lights! If it gets too close, you could have some good old-fashioned *fire* light, which is probably a hotter light than you want or need. Not good. Not good at all.
Don't forget that the biggest blinkin' light of all is free for the using - look for open shade from sunlight. Use thin window treatments or put some gauze over the window. Etc.
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