Yes they are that bad. All those pilots you see 'somehow making it work' are holding out hope for a better job 'some day'.
The reason that pilot pay is drawing congressional attention is because pilots are doing insane things to make ends meet. Many pilots, especially first officers who are just starting out have high debt loads from training and college. The debt coupled with absurd starting salaries at nearly every regional airline (sub 20k at many, sub 30k at all) results in regional pilots taking second jobs and showing up to work tired, or sleeping in the airport crew-rooms to save money.