Hi Donna,
I do not recommend cutting your calories any lower. Decreasing your caloric intake will cause your metabolism (rate you burn calories at rest) to slow down, which you do not want. If you cut your calories more, your body will start to think it is "starving" and will fight to hang on to every extra pound it can.
My first inclination is that the number of calories you need to maintain your current weight is incorrect. If it is not wrong, then to lose weight your best bet is to increase your activity level to burn more calories and build muscle - more muscle equals a higher metabolism. I do not recommend cutting your calories below 1200.