Enter this awesome little contraption.
It is hard to see with the ribbons hanging (yes, I have a "problem" with those too....LOL!), but this little rack has ten swinging arms to hold pads. It fits in the tiniest spot in my tack room, smooshed between my saddle racks and a trunk/bridle bags on hooks, but it is perfect. I have all my schooling saddle pads that I use on a regular basis out on this rack now. And the best part is that when the pad is damp after a ride, it very easily dries out on this rack too!