Is it better to use savings to pay off some of a credit card, or save it in case I lose my job?

I have 5k in savings, with about 7k in credit cards. I could pay off a chunk, but then have no savings... and I work for a non-profit agency that is suffering to due state budget cuts, in an area where job competition is very high. So my job is not super-stable.Is it better to use savings to pay off some of a credit card, or save it in case I lose my job?
I would recommend paying some of your credit cards off but not all. Since interest rates will be higher than any rate you can earn in a savings account. But since your job is very unstable, I would only put a little bit of that 5k into your credit card debt. It is very important to have emergency funds.Is it better to use savings to pay off some of a credit card, or save it in case I lose my job?
In your specific situation I'd say to hold on to your money for the next 3 months or so. Meanwhile seriously consider looking for a better paying job. That would probably be the very best action you could take.





Normally, the following is what I would suggest.





The generally accepted knowledge is that you want to have at least 6 months of living expenses saved up and readily available in some form like a money market account.





However if you have any high interest debt, like credit cards, I would strongly encourage you to pay it off as quickly as possible. Don't cancel the cards. Put them in a safety deposit box. If there is a disaster and you find it necessary you can still turn to them. But this way you have 2 advantages. First, once the cards are paid off you can save up your 6 months of expenses more quickly. Second, your monthly expenses will be lower since you don't have credit card payments to make.





Beyond that, once you have credit cards paid off, start saving. Does your employer match your retirement contributions? If so, make the most of that. Meanwhile you can start paying down other debt, such as car payments and home loans. But during this phase you'll want to be saving money as well. So don't put everything into paying down those loans.





Good luck to you. Now I need to start following my own advice.





:o)
There are charges for using a credit card. P therefore use ur savings to pay the dues. It is wiser. Good luck