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I have a friend who says he used to have the same problem. He joined toastmasters. problem solved.
www.toastmasters.org
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Isn't that more of a public speaking organization, than a 'talk to people in social setting' organization.
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yes, it's about giving speeches but those skills transfer over to other settings. social anxiety is the fear of giving speeches or just starting a conversation while around a group of five strangers. it's about practice and desensitization.
im the president of my toastmasters organization. i hated public speaking 3 years ago. now i just dislike it, much like the rest of the general population.
bwana