Just keep studying, and I'm sure you'll be able to raise that. I took a practice Kaplan test without studying or anything and that's about what I got on my first practice test. I dedicated the summer (along with a part-time internship) to studying, and I was able to raise my score to a 1210. Math is really important in psychology, so if that's your weakness try to work really hard on that (and if possible, take a class or get a tutor). You are going to need to raise the score, even if you're going for a masters. Generally, (at least what my psyc grad school prep teacher told me) to get into a Psyc masters program, you have to have at least a 1000 GRE score.
Don't give up with studying for the GRE! It takes a lot of time and dedication, but if you're able to put in that time, you'll see a raise in your score and a better chance of getting in.