When the chips are down

I know starting out everyone struggles. It seems to be part of the process. I have now hit that time, when very little work in coming in, people are being slow on payments and my stored funds are dwindling. I am already losing confidence and starting to see the appeal of full time employment again. The annoying thing is I KNOW I am good enough to make it as a freelancer.

So, what did you guys do when you hit this point? Looking for inspiration and advice!
As Peter says - you have to knock on doors... both literally and by targeted mail shots and by networking (use free meetings or even organise them yourself). Don't expect to get anything immediately, it can take ages. I've been through my mailing list A-Z and am about to start back at the beginning. And as it's good weather I may do a bit of door knocking. I give a leaflet, a pad and something like a postcard that they can pin up or keep.
and one other thing... (sorry had a phonecall!) but your 'new' website doesn't seem to work (no css?) and you have misplaced apostrophes. If I was choosing a designer I would want their website to be 100% accurate!
I think your work and your website look very, very good and there's no reason why you shouldn't get work, other than that no-one knows about you. We get most of our new leads from SEO now so instead of knocking on doors why not get people to knock on your door.