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Dont Save When You Owe Money.
 People are curious creatures. We don't always do whats best for us - rather, we do what feels best, and try to wipe out any reasons why it might not be the best thing to do. Maybe that's how come there are so many people who have both savings and debts.
Its a Matter of Psychology.
Sure, it makes you feel better to save. Saving makes you feel like you're constructing a foundation for your future, while paying off debt feels like you're throwing your hard cash down a hole. That money is for the kids education, or for doing up your house, or whatever else - and it's in an account realising a good rate of interest. What can be wrong with that? A great deal, if you are in debt.
Dont Be Fooled.
There are almost no savings accounts that will let you have interest rates anywhere near as high as the ones credit cards wrest from you. Heres a question: if you have $10,000 in a bank account pulling in 5% per year and $5,000 on a credit card at an interest rate of 20% per year, how much hard cash do you have? After just five years, the answer is effectively zero - your owings would have grown to around $12,500, the equal total that your savings are now worth.
You might not think it currently, but it really is a lot better to pay off your debts. If you utilized one half of your savings to pay off that debt, youd be in a much better situation that it's truly awesome. You avoid five years of compound interest on the debt, but you still get to keep $5,000 in your bank account, bringing in interest - after five years, that's about $6,380.
If youd still rather keep your savings intact rather than using them to pay off your debts, ask yourself this elementary question: is your pride worth $6,380 of your familys money?
Think of Your Financial Well-being.
When you get sufficient cash to pay off your debt, theres absolutely no logical reason to keep it. Debt is for people who don't have the money, and need to borrow it. Debt costs money, and savings make money - you need as much of your finances as possible to be savings, not debts. If your savings account and credit card are with the same bank, then youre effectively paying for the privilege of borrowing your own money from them. Why on earth would you do that?
There are other benefit's to lowering your debt with savings. Youll be less worried about your debts, and your credit statement will show that you were able to pay everything back - resulting in getting you a much smaller interest rate if you ever need to go into debt in the future.
I know it's never easy. You just have to be mindful that any money you've saved hasnt really been saved at all. Its money you ought to have been spending rather than buying with a credit card. Yes, it feels much worse to spend money thinking that youre spending away your nest egg - but always bear in mind that whenever you use a credit card to spend that same money, youre spending away your future, plus interest. Anyway, if you've got the debt, then that cash in the bank has already been spent - stop denying it to yourself.
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