Well when the clutch pedal is depressed you are activating the Throw Out bearing.
Any grinding during that time is most likely the TO bearing, or maybe the pressure plate. So yeah sounds like it's time for a new clutch.
As far as affordable, check out SPEC clutches. I got my stage 2 for $296 shipped. I think every stage higher than that is another $30. If this is affordable to you go for it. I personally like my SPEC clutch kit. Good quality, great grab, and good pedal response. Worlds difference from the eGay OEM replacement I had in there.
GL
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Don't mess with my monkey...he's loaded.
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