Dilemma - advice needed

[fixitquick]

I'm posed with the following situation...

My fiance has a 0% offer to transfer a balance until January '15 and has offered for me to use it.  I have 2 scenarios that I'm debating, with obvious pros/cons - just wanted to get some outside input:

- American Express - write off.  Original balance was $18,681, now currently $9,300.  Paying off at a rate of $500/mo (more, when able).  Absolutely KILLING my utilization, so getting this paid off will help me considerably there, but will also open the doors to a $5000 limit Oasis Optima card.

- Auto loan - currently payoff ~$11,700.  Really awful interest rate (don't recall exactly, but accruing daily interest of $5.38/day).  

Paying off the Amex will boost my credit, and potentially push me into the 700's.  Paying off the auto loan may not benefit my credit score, but will save me upwards of $2,400 in interest payments.

My brain is telling me to get rid of the car payment, but my heart REALLY wants the morale boost of getting the Amex paid off.  It should be noted that there's no REAL urgency in increasing my credit score (won't be buying a car/house for a while).

I believe that I already know my answer, but just want some other opinions...

[ahh10000]

As most will tell you in life, if you have to continually ask yourself what is the right thing to do, then you already know the answer.  $2,400 is a lot of money, you've obviously done the right things previously to have the AMEX so I would pay off the car loan.  Quite frankly, take the left over interest you would be paying on the car and then once you've got more saved apply it towards the AMEX.  Good job on paying it off early!

[guiness56]

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@fixitquick wrote:

I'm posed with the following situation...

My fiance has a 0% offer to transfer a balance until January '15 and has offered for me to use it.  I have 2 scenarios that I'm debating, with obvious pros/cons - just wanted to get some outside input:

- American Express - write off.  Original balance was $18,681, now currently $9,300.  Paying off at a rate of $500/mo (more, when able).  Absolutely KILLING my utilization, so getting this paid off will help me considerably there, but will also open the doors to a $5000 limit Oasis Optima card.

- Auto loan - currently payoff ~$11,700.  Really awful interest rate (don't recall exactly, but accruing daily interest of $5.38/day).  

Paying off the Amex will boost my credit, and potentially push me into the 700's.  Paying off the auto loan may not benefit my credit score, but will save me upwards of $2,400 in interest payments.

My brain is telling me to get rid of the car payment, but my heart REALLY wants the morale boost of getting the Amex paid off.  It should be noted that there's no REAL urgency in increasing my credit score (won't be buying a car/house for a while).

I believe that I already know my answer, but just want some other opinions...

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$2400 over the course of how long?  Is it several years? 

Is AMEX CO'd or in collections?  If not, what are the chances it would be.

[fixitquick]

$2400 over the next ~15 months (no interest deal is good through 01/15, which is when I will pay off by).

Amex is charged off - won't go to collections, as they've kept the account in their internal collection department.  I've been working with them for 2+ years to bring the balance down.  At worst, it'll get paid off in the next 19 months ($9300 @ $500/mo).

[guiness56]

Personally, I would do whatever I could to get AMEX out from under me.  They can still sue you and it is a significant amount.

Do you need the payment history for the next 15 months on the auto loan?

Save $2400 by paying off a car note earlier than 15 months or your AMEX earlier than 19 months.  Both will be paid off within a few months of each other.  The AMEX is still accuring interest also.

Either way youl will save money.  $500 a month for 15 months is $7500.

Just playing devils advocate.