This. For one, learning to cope with rejection will come in handy in the future, especially in this field. But beyond that, if you have to find another option, do so. You know that if after the dust settles you wish to go for round two with the PhD applications you have about a year to kill before you are accepted and start classes. Take that year to try out a new field, work a crappy (or awesome) job and pay down student loans, or simple cultivate some kind of skill. You may just find your calling or feel even more resolved when telling your friends and family that you'd like to dedicate yourself to literature as opposed to becoming a lawyer. Seriously though, it's not a bad thing to step back from academia every once in a while.