Cashing in treasury bonds to pay off relocation loan?

[Interpolfanclub]

My parents put away some money in treasury bonds when I was little, and they are now enough to pay off the relocation loan I had to take out this year for residency interviews. Loan is at around 7.5% I believe and rapidly accruing interest...other loans at more reasonable interest rates that I won't bother paying down in residency. Gonna invest extra $$$ in Roth 403b thru residency...

My question is should I cash them in now and pay off the loan? I'm pretty sure they would be counted as income and taxed but I'm not sure. I'd like to wipe that loan out as soon as I can.

Thanks in advance

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[Jocomama]

Depends upon principal at 7.5%.
I assume this is a standard, un-secured 7.5%?
Why rob Peter to pay Paul?
Rather than putting away $200 per month for retirement, put away half, and gradually pay down your 7.5% loan. As long as it doesn't adjust, 7.5% is cheap. If your treasuries are gaining, let them gain.

In the grand scheme of things - $5-10K interest bearing v loan is the same thing in 5 yrs. Do what makes you sleep better at night.

My parents put away some money in treasury bonds when I was little, and they are now enough to pay off the relocation loan I had to take out this year for residency interviews. Loan is at around 7.5% I believe and rapidly accruing interest...other loans at more reasonable interest rates that I won't bother paying down in residency. Gonna invest extra $$$ in Roth 403b thru residency...

My question is should I cash them in now and pay off the loan? I'm pretty sure they would be counted as income and taxed but I'm not sure. I'd like to wipe that loan out as soon as I can.

Thanks in advance