The “TY500” on the derailer gives the whole ball game away. That is a Tourney rear derailer and they are made of the softest metal on the planet. The derailer arm is bent and, while you could try to straighten it, it will only bend again. Paper clips are less prone to bending than the Tourney. Just replace it with a Alivio or Acera. Slight more expensive but vastly superior.