How can I get it through my head that people don't care as much as I think?

Specifically in public, I can't even leave the house without a specific outfit because of how insecure I am. It literally feels like everyone is staring at me even though they aren't. Lately I've been borderline hallucinating things: thinking someone yelling "Faggot!" at me when they were really just calling their friends name. I think Laughter is ALWAYS directed at me. Even if I tell myself I'm interpreting things wrong, there is still the initial shock which is hard to deal with. Everytime I go out, its literally a humiliation for me, not even in actuality but just the way I interpret things.

At least I know I'm crazy, but how can I deal with this? Exposure really doesn't seem to be helping.