I've not seen your work but as a fellow artist and part time photographer I would say persevere.
It's a shame that journalistic photography or street life portraiture is now being seen s intrusive and an invasion of privacy. It doesn't help being under CCTV surveillance almost anywhere you go, but that's another discussion.
Seems ironic that the reality TV shows has brought about a riot of people wanting to be famous, yet try immortalising them in a more classic classier way, and they'll rip your camera off you, because you're invading their privacy. Maybe that's why so many people wear sunglasses in-doors in supermarkets, cafes etc...Its privacy, ah...I get it now.
I did a degree in Fine art (a long time ago in another life time) and the best thing for me was exercise. Keep fit and go for a run or, to go to the gym and the ideas will flow. Also take long showers (Douglas Adams was famed for taking very long baths whilst writing Hitch Hikers guide to the galaxy). Don't mean to sound weird but the amount of eureka! Moments I had during a long shower.
Always, always, always inflate your rate. If your say your looking for £15 per hour, you'll get £12. if you say £12 you'll get £10. Work out what you feel is the right rate for you, given the job role and your skills/experience/qualifications, then add 20%.
Oh dear i'm new as well. I knew the market was competative but, the flavour i'm getting from the few forums i've been on this morning is the market is flooded with new contractors.