But if you’re paying expensive interest on a credit card at the same time, the numbers could be working heavily against you. Rachel Springall, finance expert at Moneyfactscompare.co.uk, says: “Clearing expensive card debt should always be considered a priority compared to holding small amounts of cash savings, as the amount owed on a typical credit card charges way more interest than can be earned on a flexible savings pot.” In the Moneyfacts example, around two months of card interest would be enough to wipe out an entire year’s interest on the average £3,000 savings pot. Simon Trevethick, head of social change at debt charity StepChange, says: “In many cases, interest rates on credit cards are much higher than interest earned on savings, so it often does make financial sense to use some savings to reduce or clear expensive debt. Before using savings to clear a credit card, make sure more important bills and arrears are covered.