Hmmmmm. Interesting Deborah. There could be things going on, on a number of levels. What do you think sellingmysoul?
Firstly, your struggles with organised religion and belief systems and so on in this life that you have talked about, secondly the past life trauma that you remembered in your childhood but couldn't really talk about to anyone, thirdly the increasingly scary nightmares, fourthly...? All this won't be unravelled in one day or even one week, but that's OK - there's no such thing as time anyway

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If thinking about regression or meditation at this point is just all too much, it would be wise to do everything
else you can to create some health and calm in your body and your mind, as this will help with your 'spiritual' issues (yes, really). Our body, mind and spirit are all highly interactive and one will not be 'right' if the others are not also 'right'. The body is a relatively easy one to tend to, so why not start there?
It probably sounds incredibly mundane and boring, when you are talking about wiccans and demons and so on, but you need to make sure you are not taking too many stimulants - coffee, nicotine, alcohol, sugar, loud music, violent TV shows, talkback radio, video games and so on (especially before bed). If you can't cut these things out of your life completely, at least cut them in half and see how that goes for starters. If you already don't indulge in these things, good!
It is important to eat proper, healthy, fresh food - no processed, sugary or junk food containing various chemicals and colourings which are bad for you anyway, but can do all sorts of funny things to your body and brain chemistry. Get plenty of exercise. Take at least half an hour out of every day to walk, for example, especially if you can go for a nice long walk somewhere beautiful and tranquil, then sit on a bench, by some water and think about 'nothing'. Very relaxing and healthful for mind and body.
If you are on any kind of medication make sure you have a chat with your doctor about your increasingly bad dreams and general anxiety levels. Can't hurt, eh?
Don't get me wrong, I'm not saying your experiences are all in your head or are all to do with junk food or too much TV. I am saying that the more you can eliminate the 'bad' things in your body, the more you will feel better in general and the more you can start to get some clarity about what is really going on in your psyche, which is obviously something very 'big and scary'.
All these things will do you good and make you feel better in any case, even if they don't help with the nightmares, but they probably will help, at least a little.