Charné van der Walt runs an independent fee-based firm called "Lemons into Lemonade Financial Planners CC" in Stellenbosch. She has been in the financial services industry since 1991.
I have some extra money, which would be a better idea, to put it into my home loan or pay off my credit card?
In general the idea is to pay off the one with the higher interest rate which is normally the credit card and not the home loan. However, if you are paying off the card just to use it again, you will only save the interest but not benefit from this financially in the long run.
In some cases, depending on where clients are in terms of card debt and what they owe on the home loan's balance, I will sometimes suggest a split between the two just to remain balanced and until the client does not use the card too easily. If you are very disciplined with your money and know that you will not "over-use" the card again, then you can pay off the card and from there, pay on the home loan what you used to pay on the card each month. You can add R200 to a bond of about R600,000 and still save in years on your bond term.
If you can, try and visit a bank's home loan website for bond calculators and see for yourself on your own bond's values what your term can decrease to if you add some money on it. This will really motivate you to pay extra on the bond and also not use your card unless it's really an emergency.