I have a powakaddy cart bag which i think is great but there is a place on it for my golf towel, and when its on the cart it drags along the ground, gets really dirty and gets caught in the wheels. Anyone have any tips for what they do with their towels?

This works for me.

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Use a smaller one?

Ride and throw it in the back of the cart with your headcovers. Just kidding. When I walk I thread mine through my irons -- gets rid of bag chatter too.

+1...threading it through the irons will solve your problem. I have a really long towel and doing this is the only way to keep it from dragging on the ground.

edit: umm...that last sentence sounds dirtier than intended...