I'm in my first year at a social psych program with a well-known advisor. I was rejected from everywhere 3 years ago (mediocre GRE, fairly good GRE scores, mediocre letters of rec), got into one of the funded masters, and worked my ass off/made connections with people there. I applied to 10 social psych programs last year and got invitations to interview at 3. I don't know if I would have gotten into the other two because I withdrew myself from the running when I got in my first choice.
So an MA worked for me. But I wouldn't go into (serious) debt over it.