What the psychic meant by "shadow demon" might be different than what I consider a "shadow demon". I'd go for a gentle confrontation, but you've got to be in an assertive place to pull that off and if you're terrified...being assertive and compassionate towards the thing you fear is going to be difficult.
But that's not a problem if "shadow demon curse" means something else, like...any curse, there are ways to break it. I heard a neat one where you stand a black candle in a bowl of ritual water (that is, water that's been made holy by moonlight or whatever) and light it. The black of the candle attracts the shadow or curse, burns it down, when it burns down enough to douse itself then the curse is broken and cleansed by the ritual water.
It could even be as simple as banishing with laughter.
Or it could be a soul-shard that you lost and need to find again to become part of your whole, or a blockage in your body that needs to be unblocked.