How to ease my mortgage situation?

I tried for a loan modification was denied. On paper my finances look good but in real life I am behind on some bills. We are current on our mortgage payments but been a retiree its getting harder to keep up on bills. When
I spoked to loan mod agent he told me that even if they would have given me the modification my payments would have gone up. I told him that I thought that a modification was supposed to lower my payments not increase them, Im confused. I dont know how much longer we will keep up before I start to get too far behind on the bills. Please if you have any advice that will helps us either keep the house otherwise I prob going to have to walk away and at my age dont know if I can get another mtg.