Any suggestions on how I should cut/ color my hair?

I have decently thick 2c wavy/ curly hair and I have a lot of it. My hair is naturally a very dark black, but right now I have faded caramel balayage highlights from five months ago, and the ends are pretty damaged. I would like to go much shorter (above my shoulders) but everytime I cut my hair short it tends to get too poofy for my liking and is just a pain to manage. I would also like to color my hair with balayage highlights that look like I dyed it in an ombre style, but I'm not sure about it because the last time I colored it, my hair ended up quite damaged. I know it's a lot but I kind of want to know what I can do because I am tired of my current length of hair (chest length) and color. 

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