You know what? I'd just keep going and make this project my official "knitting blob." I did two or three blobs when I taught myself to knit; I didn't know anybody I could ask for help in person and there was barely any internet at the time so I did my own troubleshooting. (My first usable project was a scarf, K1P1, in which 100% of the stitches were twisted. I still wear it!)
Since you've just learned the knit and purl stitches, you're not going to be able to fix your problems until you're so familiar with the stitches that you know what they're supposed to look like. You're also going to find it challenging to identify and fix problems while your tension is irregular, and that's another thing that only experience fixes. Knit for several days and you'll have a handle on what you should be getting from your knitting.
Also: I'm a very loose knitter. Knitting tightly can cause joint pain and makes it difficult to get the needle into the live stitches, so be glad you don't have that problem, and decrease your needle size. I sometimes have to go down as far as a 5 to get the tension I want from worsted yarn; if I want a lot of air and drape in my stitches, I go up as high as a 7, but never above that. My tension is too loose to get a good piece of fabric from an 8 with worsted weight.
What I think I'm seeing in this piece is a K2P2 rib. It does look like there's an issue with the first five stitches as they lie on the needle. It should be 2 K stitches, then 2 P, then 2 K, and so forth; I'm not seeing that here, and the fifth stitch looks twisted (the right hand side of the loop is behind the needle and the left hand side is in front).
Your big extra loop could be a dropped stitch, followed by a yarn over (there's something seriously wrong with that second stitch). If you only drop a stitch or you only add a yarn over, your stitch count ends up wrong because you've lost a stitch or gained one, respectively. But it looks wonky when I follow each column up from your cast-on row, so that might not be the problem; maybe somebody else on here can better spot the error.
If you're dead set on correcting this problem instead of continuing and embracing the weirdness, then carefully insert your free needle through ALL the stitches in a row below the problem, making sure each stitch lies untwisted, with the right side of the loop in front of the needle. Then remove the needle from your live stitches and pull back until you reach the good row, and continue working from there. It's called frogging--because you RIP IT! RIP IT!
But still, I'm team Keep Going. Damn the torpedoes! Full speed ahead!