First, if possible, I would suggest maybe seeing a psychiatrist or psychologist..therapy, medication or combination maybe helpful to you during this time.
Second, taking time off..if you can, I say do it. I have done so twice in the past and yes, it helped me tremendously to ease back and give some thought to what I wanted to do. Heathcare/nursing has changed a LOT since I started in the early 1990's and frankly, I don't see if getting better for the nurses - for a lot of reasons.
What I can tell you from my time off is this...IF (& that's a HUGE "if") I ever went back into the hospital setting it would be non-clinical in nature - education/infection control etc - that's what I mean by non-clinical. A specialty unit or a med/surg it would be PRN only. Period. I would not work FT in direct patient care.
LTC..this again is not an area for me. Neither is a M-F 8-5 weekends/holidays off type schedule. I want..balance..steady income where I can use my nursing skills/experience/degree but not be so stressed out/anxious and miserable at work on on days off and for the record, I am not a sensitive person so to have reach the breaking point w/nursing - it took a lot for me.
What I am doing now is interviewing a lot of places - home health, hospice, dialysis and a doctors office. I'm down to the last of the interviews this coming week. I have been offered one position already (home health - part time). Once I finish the others, if job offers come through I will weigh out the options for each and decide from there. If none materialize, I will accept the HH one and give applying/interviewing etc. a rest for the rest of the year.
Like you, I am not in a position to relocate. I do think, if I could, I would be able to find a position that would suit me more - there would be way more opportunities than where I'm living but I have to make do w/what is around this no man's land of a place I live.
Also, like many on here, if I could get completely out of nursing I would - but as a lot of us have found - a nursing degree locks you in and while there is flexibility w/in nursing to the point the current economic situation allows - there is little outside of nursing that is available or pays well enough to hit the basics of simply living.
After I settle the job question, I will look at school/education for something in addition to nursing or that I could move into w/o much effort. No FNP, no PA - nothing along those lines.
What I've had to come to terms w/is the guilt I have felt over not "loving nursing" or shouting from the roof tops that nursing is "my calling, who I am" and that I don't care for hospital nursing anymore. There has also, after 20 plus yrs in this, been a sense of sadness that what I once loved (which was working in a hospital) has changed into something I hardly recognize and is no longer about the patient but about the bottom line.
I don't know if any of what I said helps, but you are not alone and there is nothing wrong w/you - you are overwhelmed and need a break. That's ok.