Currently unemployed - Should I pay off debt or hold on to my savings?

I was recently let go from my job due to downsizing. I am not sure if I should pay off my debt or continue to hold on to my savings. I owe $18K in debt and have $32K saved. Would like to be "debt-free" but since I am not currently working and looking for another job should I simply pay off all of my debt and "start fresh" or hold on to my savings and continue to pay monthly on the debts? What do you suggest?