What Should I do?

You could try selling/getting rid of some of your stuff... Or you could store it on Ralen Hlaalu's body. It's a bottomless container that never disappears, and neither will your stuff. He can be found in his manor in Balmora, near the alchemy shop. Next to his manor, there is a building with a staircase that you can use to hop over to his balcony so you can get in undetected. Just make sure you bring a good Open spell because you might not be able to get back over the balcony if you don't (Both doors have a lock level of 60 if I remember right). There is also another person in the manor, so kill her if you want to steal anything.

I know a glicth that hooks you up and lets you carry 50000 plus pounds. First buy the spell soultrap, and fortify attribute. Go to spell making select fortify attribute then the one that lets you carrie more stuff. Then put it on SELF,and magnitude 100 to 100 duration 2. Then select soul trap put it on TARGET duratation 2. Then make up a name any name for the spell then buy. Note: this works with any fortify atribute spell WARNING don't bring speed super high and don't let it touch people they will try to kill you but with high agility they can't hurt you except for magic atacks. Hope that help but do the this with luck first so you have a higher rate of it working. Bring everything up to the number of you choice BUT only put speed on 100. And if you don't like how high they are use the unfortife skill to lower it