Is it smart to use savings to pay off credit card debt?
Tryna figure out if it makes sense to use my savings to clear my credit card debt and its honestly one of those gray area money decisions. I'm sitting on about 5k in credit card debt while also having around 5k in a high yield savings account pulling 4.35 APY. Monthly take home is about 4k with around 2800 going straight to rent, utilities, and bills. Groceries run me 200 to 300 and there's a small student loan of about 70 a month with 3k left.
Most of the credit card balance came from a rough stretch about a year and a half ago when I lost my job and lowkey wasted some money on mobile games and impulse stuff. Things are way more stable now, cards are mostly used for everyday stuff like gas and the balance usually gets paid right away, sometimes with a little extra to chip at the debt. Also been sending some money to help my parents which makes the budget tighter and adds another layer to think about.
The real dilemma is whether I should just wipe the card balance in one shot using my savings. On paper it makes sense since credit card interest is way higher than what savings earns, but draining the account fully feels risky since that's basically my emergency cushion. How have you handled this before, did you clear the debt fast or protect the emergency fund first.