Dear Liz: In a recent column, you advised someone to pay off credit card debt with his emergency fund. I agree that “Clinging to cash that’s earning less than 2% doesn’t make sense when your debt is . . . costing you a double-digit interest rate.”

But isn’t that “old school” thinking? Aren’t we all supposed to be in “survival mode” now and building up our emergency funds instead of paying off debt?

I am recently divorced at age 65, with no chance of getting a job soon. I did not get spousal support as my ex is on Social Security and a pension (which goes away when he dies). I got half of a very shattered IRA, which I am going to need to live on.

I am in the same boat, faced with carrying $8,000 of credit card debt or using funds that I need to live on to pay off the debt. What’s your answer to my problem?

Answer: Take a close look at what credit card companies are doing to their customers these days. They’re doubling or tripling interest rates, even for people with good credit. They’re lowering credit limits and slamming shut accounts, endangering people’s credit scores. They’re experimenting with new fees.

Why would you put up with that if you had a choice? People who don’t pay off their credit card debt with their savings when they can are choosing to bind themselves to companies that have made it quite clear they don’t care about their customers’ financial well-being.

The key phrase there is “when they can.” If you’re facing a layoff or already unemployed, you really do need to be in survival mode and conserve your cash. That means paying the minimums on your debt until your economic situation improves.

If your situation doesn’t improve, or if issuers raise your rates to the point where you can no longer pay your minimums, you may need to consider credit counseling or even bankruptcy to deal with this debt.

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