I don't see the advantage if you still have significant credit available. Let's say you pay off your credit card debt instead of saving. You then lose your job and need money to pay the bills. Wouldn't you just put the bills on your credit card?
It all depends on the interest rate of your current debt compared with the interest rate of your new debt. Presumably, any new credit card debt will be at the same interest rate as your current debt since, as far as I know, new debt doesn't change your interest rate. (If it can, then having a reasonable buffer of savings does seem like the better choice.) Mortgage debt has a lower interest rate than your new debt would in this scenario, so saving is clearly preferable over non-credit card debt.
Anyway, in times like these when the financial system is broken and available credit could suddenly become unavailable, saving is probably a good idea.
You can't pay your mortgage with a credit card. If you want cash they charge you a higher rate. So keeping cash on hand just in case can be a good idea.
It all depends on the interest rate of your current debt compared with the interest rate of your new debt. Presumably, any new credit card debt will be at the same interest rate as your current debt since, as far as I know, new debt doesn't change your interest rate. (If it can, then having a reasonable buffer of savings does seem like the better choice.) Mortgage debt has a lower interest rate than your new debt would in this scenario, so saving is clearly preferable over non-credit card debt.
Anyway, in times like these when the financial system is broken and available credit could suddenly become unavailable, saving is probably a good idea.