Is there a way to fix my iPhone dongle/adaptor?

When I try to play music through my headphones using my dongle, it comes out staticy and distorted. I have to hold its wire at an angle to play music properly. Is there any way to fix this problem?

Get a new one. Those things do not last that long. If you want it to last longer, get something call a cable saver or wrap some tape near the base so that you can't bend the cable too much.