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At least you have the balls to ask women out, I can't even get that far.
>I have good hygiene
Literally the bare minimum
>I'm not extremely overweight
I didn't think I was that fat until a friend really pointed it out. If your BMI isn't normal, you are overweight. Lose more weight, go to the gym
>My clothes aren't trendy but they are clean
You do laundry like everyone else. Get a better wardrobe. Switch out of the NB shoes, ditch the graphic tees, and wear adult clothes
>I'm not a bad person
Nobody thinks they are a bad person
>What's wrong with me
No idea, you need some self reflection.
What are you doing to meet people? I don't just mean women. Do you have a friend group? Do you do anything for your community? Find a friend group first. Try dungeons and dragons, or some community oriented games.
>women only want the best of the best, they won't settle for their looksmatch
So maybe you are less attractive than you think. You could easily get a slampig with kids, but that isn't what you want. You can't blame women for trying to get the best deal. Dating isn't about "winning" by finding the hottest babe, it is about finding a lifelong partner.
>What should I do now? Drop out.
No, change your approach. Women can smell desperation. Get your life in order dude. I don't just mean your finances. I mean your physical health and social life. Right now, turn off your computer and go for walk, then when you get back look for social groups to join.