I did a big mistake and bought a cheap bike for casual use. On my first ride I fell down on to the right side of the bike. I am not sure if it is this fall or just that the bike is poorly assembled but as can be seen below the derailleur is not perpendicular and is too close to the wheel result in touching the spokes when I shift to larger cogs.
I have looked up videos on youtube and they seem to about bent derailleur hanger. However the gear system shown on you tube seems to be different than what is at my bike and I am not sure if it is really applicable in my case.
Any pointers on how I can fix this myself. I am not keen to approach LBS since they will not been keen to work on this bike being cheaply bought etc.
Side view of the gear