You can dress "thug" without having to dress in sizes 10x as big as you need (I'm supposing you wear that style from the brands on your clothes and the bagginess). I'm from NYC (obviously) and even the most ghetto people in harlem don't wear clothes that baggy. So the obvious solution to that is getting tighter/smaller sizes. Don't mistake me though, I'm not saying get skintight shirts and short shorts. Just something that makes you look a little more decent.
Second, as said before, a haircut and contacts will help a lot.
Last, stand with your feet angled more parallel. Don't know if that's how you stand or just happened to be in the picture, but they only make you look larger when they are angled out like that. Same with the clothes, larger clothes make you look even larger (and shorter).