<prompt> Human: OK, I just discovered this subreddit a few nights ago and I really need some advice on my current financial situation. Long story short, I have been helping my parents out during the time my mom has been unemployed and I had racked up bills that I was no longer able to pay. I pulled up my credit report and I currently have 6 accounts in charge off status. They were placed in charge off status this past month for a grand total of 6,000. I dont have any savings or an emergency fund of any kind so I am not able to call my creditors and try to settle. I do have 6,000 in my 401K but I am not able to withdraw it at the moment since earlier in the year I had to take out a loan out of my 401K to help pay for my grandpas hospital bills. I created my budget and after taxes, health insurance, and 401K deposits, my take home pay is 2,000. I spend 1,000 in total for my rent, utilities, cell phone, internet, car payment, insurance, and gas. I plan on spending 600 on miscellaneous stuff. I do have one credit card that I have been able to stay up to date with my payments and that one totals out to 700.My questions include: Should I use my now available 400 a month and start an emergency fund first or pay off my 700 credit card bill? Or should I try to save up enough money to try to get these accounts out of charge off status?Any advice or resources would be greatly appreciated.  <response>: It depends on what your miscellaneous expenses are. If its for XBox Live then Id say you have extra money you can put towards your emergency fund or your debt. If its for food or other necessities, not so much.Anyway, assuming you do only have 400 to work with and youve already identified any savings or cutbacks you can make, Id build up your emergency fund. Some criticize me, but if you lost your job and had to live off of savings eating is more important than reducing your debt load. I recommend 4-8 months of expenses. For you, starting on the low side of that is probably a good idea so you get an earlier start on paying the credit cards. 