Housing
I've also heard that elderly disabled housing is alright, and not at all as bad as the non-elderly non-disabled housing projects. You can apply for section 8's in any town, not just your own in case you didn't already know that. If you dial 211, they may have additional suggestions.

Gifts
If I were in your position, I would not buy any gifts. I would only send out cards with heartfelt letters telling everyone a little about my year, that I'm having a substantial financial hardship so I'm sorry I'm not sending a gift, and that I wish them a wonderful Christmas and wish them well in whatever they've been doing lately. If you don't have time to write everyone a letter, perhaps you could make one nice card with pictures and a one quality letter that can be sent to everyone. (I've been watching the Suze Orman Show and it seems that buying gifts is a huge extremely common pitfall for people, and especially for women, trying to get out of debt.)

Therapy
Some people head to free 12 step groups when they can't afford therapy. It's not the same as therapy, but sometimes better than nothing at all. You will be able to share your problems, listen to others, and possibly find supportive people. There's a 12 step group for just about everything these days from debt to emotions anonymous.

Medical
Don't get me started.... USA really needs a public insurance czar to go out and listen to the problems that elderly and disabled people are facing with insurance. There's no way this system could be so messed up if anyone truly gave a.....

I hope things get better for you.