I put the strap around one of my alignment sticks on my Titleist Staff Stand bag.  It won't hit the ground when you do that.

Fairways and Greens!  

Hi Bo,

Pull one half of the towel through the red string loop. You should then be able to hang it without it touching the ground. Another method I use is to hand it in the bags towel loop clip and then pull the red string part out of the loop so that it does not accidentally fall off the bag. Or to think of it another way, clip the red strip to the bag and then pull half of the towel through the towel loop.

Have a grommet put in or take it to a seamstress and have a slit sewn in the middle!

Bo, I have the same one and I just thread it through my clubs at the top of the bag, I prefer to not let it hang down....