Would You Rather Have A Savings Cushion Or Get Rid Of Your Debt?

Personal finance blogger Debt Ninja writes that he has $22,000 in savings, and isn’t sure whether to use the majority of that to blast away his $15,000 debt. On top of that, he’s got a wedding and honeymoon to save up for.

He writes:

Situation Uno: You could have $20,000 in savings, but also have $15,000 in mid-interest debt (7%).

Situation Dos: You could have $5,000 in savings, but zero debt.

I’m currently sticking with situation uno. I have $22K in the bank and a little over $15K in debt. I could pay off my student loan tomorrow, be truly debt free, and still have a small emergency fund. I chose not to. Dave Ramsey would be pissed! My blog’s title is Punch Debt In The Face, but by choosing to remain in debt, perhaps I should change the name to Punch Debt In The Face When You Feel Like It. It doesn’t quite have the same ring, does it?

Most debt-conscious savers find themselves in such a conundrum at one time or another. What would you do in Debt Ninja’s situation, or what have you done when facing similar circumstances?

Do I have to change the name of my blog? [Punch Debt in the Face]