Get rid of the debt first. I think you should try to have a small savings account just for unexpected expenses but....once you get a decent chunk saved ($500-$1000) take it and make a big one-time payment towards your debt and pay it down. The more you pay down your debt, the more you can actually save as you're not paying near as much interest each month.

Find your lowest interest credit card and use that if necessary to pay the unexpected expenses. Also, once you have balances lowered somewhat, look for cards that allow "interest-free" time periods of 12, 18, even 24 months for balance transfers. You usually pay a 3% fee up-front on balance transfers but you'll more than make up for it by what you save in interest over that time period. Plus, you'll simplify your life by being able to just send money to one place, rather than a dozen.

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