therapy works a lot better in the long run. you will never have a sex life so long as you take zoloft, and it is probably only going to work thru placebo effect, if it does anything (google antidepressants kirsch placebo). xanax is a benzo, and they cause memory problems, so if you are in school, or need to remember stuff for a job, you could be quite impaired. Also, during withdrawal, the anxiety will come back far worse than it was before, in many cases, plus maybe you will get other special problems like restless legs syndrome.
many people like the lucinda bassett program, although it is expensive (my county mental health workers use it in their programs for people with severe & persistent mental illness). there is the anxiety & phobia workbook by edward bourne. Your library may have some books. Plus counseling can be helpful, if you find someone who is good at working with anxiety disorders. My social worker says that all the people who completed the lucinda bassett program did get off their anxiety meds, except maybe take a benzo once a month, and these are people who have very severe mental illnesses.