In times of financial hardship, see what you can do

If you are one of the many who are experiencing some type of financial difficulties Right now – whether it's because you've recently been laid off, had a reduction in work hours, or are simply worried that your job is at risk – experts suggest using this cash windfall to make sure your basic needs are met.

But for those who still have a paycheck and therefore find it easier to pay essential expenses, you may want to consider using this extra money to pay off any high-interest credit card debt you may have, and help pass the financial difficulties.

Here are the four signs that allow you to pay off your credit card debt with your stimulus check.

1. You can pay for groceries and any other basic needs
Many Americans are struggling right now to keep food on the table, so make sure you can afford it before you use stimulus money for anything else. Many major banks are helping people through financial hardship programs when it comes to their mortgage and other loans, but keeping your family fed should be the first place you look to spend any extra money.

 2. Your rent or mortgage is covered
If you can afford to buy necessary food and groceries for your family, the next thing you should do is keep a roof over your head. Housing payments are defined as "high priority debt" by the National Consumer Law Center (NCLC) in their debt management book, "Surviving Debt" (available for free during the coronavirus emergency).

Housing may be one of your biggest expenses, so if you can afford to pay rent right now, this is a big step and a possible sign that you will be able to use your stimulus check to pay off other debt and ease your financial difficulties.

3. You can afford to pay your high-priority bills on time
Along with your home, you'll want to make sure your utilities like water, sewer, electric, and gas are paid for. Your utility bills, as well as any outstanding car loan or lease bills.

Read More: Credit score can increase with the good use of credit cards

If you're able to pay these bills – and ideally on time so as not to hurt your credit score – you're in a better position to use your stimulus money to pay off credit card debt.

4. You have money saved in an emergency savings fund
It may make sense to use your stimulus check to pay off your credit card debt if you already have a sizable amount of cash stashed away in an emergency savings fund. Experts generally advise saving three to six months of expenses, and most suggest aiming for six months of expenses in times of financial difficulties.

As you figure out how much to put in your emergency fund, it's okay to only include your essential expenses in the equation. For example, your ideal budget might be $4,000 per month when you are gainfully employed and can afford to spend money on things like entertainment, dining out, new clothes, hobbies, and other additional products or experiences that increase your quality of life. But if you only spend $3,000 on necessities each month, a six-month emergency fund would be $18,000, and you wouldn't necessarily have to save the higher amount of $24,000 before you could start paying down the debt. .