Ricey,
You know the industry you/we are in is on it's arse. The market is still contracting and personally, I think, you'd be out of that company within the next year or so whether you wanted it or not. When a company gets taken over they will assess the current staff, their roles and their salaries. The higher the salary, the more at risk you are.
Therefore, leave. Now.
Take the six month contract and live like a pauper. Save as much as possible and assume you won't get another contract. If you don't, then use your savings to live on and get back to PAYE. Nothing ventured, nothing gained.
If you do get another contract, then happy days.