Contract work or permanent, which would you take? - what worked for you?

I got a contract offer for 7 months as a call-centre agent and I am unsure whether to accept. I am in Baltimore, in case local advice matters. I have 5 months of savings left. What would you do?

Thanks for writing this out. I went through something close to it 5 months ago, and it got easier once I kept a simple log of every call and form.