I agree with Barbara (babash) and Judy (killiecrankie) and make black handles. Love Chris
I can see red under the fabric maybe she just covered red webbing with the bag fabric to make the handles.If that is the case you could undo the handles & recover them ,in a black fabric or just make new black handles.
You could reline them in the same color as the Letter in embroidered in. then it would match.
Hmmm, if it is just the fraying at the folds, I might take some black fabric and make a binding for the sides of the handles. It would protect from further wear and also reinforce the handles...