Towels can become contaminated with bacteria shed from the skin or from body fluids in the bath water. Damp towels can contain dermatophytes, a fungal growth which may irritate the skin. If you have athlete's foot, avoid drying your feet first then continuing drying up the legs, as this can spread the infection to the groin area. Candida, a fungal infection, can also be spread by damp towels, and scabies, a mite infestation, can be spread by sharing towels.