No, it does not sound stupid at all, you may be right, but I think you should confront this demon. It may be the best thing to do - bring some understanding to your present life. I hope you go and find some sort of peace.
I don't know enough about reincarnation to help you, but I am sure there are a few here on the mudcat that can offer you some.
I hope the trip goes ok for you
Patrish x