To have savings when i have debt?

[SummerSix]

Just that really...

I don't have much savings as i only started saving a couple of months ago after paying a couple 'bigger' debts off and already had to dip into it but I wish to continue saving a little each month.

Atm I have around 400 in savings so not much at all but its a little buffer should I need it.

I have one debt really except my car with only a few months left to pay on it, as I consolidated everything else onto my credit card with low APR (which is less than half of the interest rate if i hadn't have consolidated).

So I have around 2.5k in debt.

AIBU to keep savings or should I transfer savings into paying off credit card and if needed use the credit card as in an emergency as my buffer?

I think you've answered your own question here when you mentioned that you've already had to dip into this savings pot to cover some work lost due to illness.

Yes, it is financially illogical long term to have savings and debt, because you pay more in interest on debt than you get from savings, but that's not the whole picture. This sort of advice is great for people who earn decent money and have several thousands in savings, and are wondering how to make their money "work" for them.

You are on a lower income because you are part time and have £400 set aside. That's not saving for the future kind of money, that's just an emergency fund. You've already needed to use this emergency fund. You'll need to use it again. Something always comes up, especially when you need to pay down debts. It's sod's law.

Keep that £400 somewhere that you can get to it straight away, and top it back up when you need to use it. Anything left over can go on your debts. If you don't do this you'll just keep spending on your cc everytime there is an emergency and you'll be paying interest on that and take forever to pay it off.

I think that it depends on what kind of person you are with regard to debts. If the lack of funds sometime is entirely due to reduced income and not because you can't resist temptation then I would keep enough cash to pay rent but for just about every other emergency a credit card can be used. Therefore I would pay off the credit card rather than save assuming the interest rate on the credit card is higher than what you can get with savings.