by 
The Curious Bag
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<h4 class="dechead">On One Hand: Debt Is Expensive.
The typical credit card charges you an annual interest rate far higher than the interest you receive for keeping money in a savings account--often 10 times as high, or more. So the money you'd be giving up by pulling out some of your savings is more than made up by the money you'd save by eliminating high-interest credit card debt.
On the Other: You Need a Cushion.
Financial advisers suggest that you keep enough money in savings to pay three to six months' worth of living expenses, in case of a job loss or other financial emergency. Paying off debt is important, but going without a savings "cushion" could lead you right back into the credit-card trap as soon as you hit a rough patch.
Bottom Line
As long as you keep enough in the account to tide you over in a short-term emergency, the smart move is to pull money out of savings to pay off credit card debt. Then take the money you had been using for monthly credit card payments and use it to replenish your savings.
Source:
The Motley Fool: 9 Ways to Pay Off Debt
CreditCards.com: Emergency Fund Comes First
More Information:
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