I had that happen to my bug, but slightly different. the fork that holds the throwout was damaged, and had slipped, causing the throughout to rub on the clutch (instead of being centered, it was off centered) I didn't really notice it at first, till it had ground the throwout bearing so much that the ball bearings had burst and were beating the inside of the bell housing. I was sorta screwed so I had to drive it home like that. probably a mile before I was home it was so bad that the clutch was basically gone (the ball bearings had gotten lodged in crappy places in the pressure plate, making it stick)
long story short, clutch with only 10k on it was trashed, throwout bearing trashed, flywheel was beat to death, and I needed to replace the fork for the throwout bearing.
clutch cables breaking aren't as nasty though if you can shift without a clutch. and in an old vw, starter startings aren't bad.