I used to run my own small business from home but I now have a regular full time job. I plan on buying a home in the next 2 years & I’m wondering how hard I should work to pay down the debt from a small business I used to run (I haven’t filled out the paperwork to officially close the business).

The business has its own tax id & I currently use my income from work to pay down the debt on 2 business cards I have, but I’d like to lower the amount I pay (payoff in 3 years instead of 2).

The business accounts are in good standing (no late payments, not maxed out, etc.) & I have no personal debt and pretty good credit. Should I focus more on increasing the amount I save for a down payment on the house, or paying off the business debt?

When I apply for a mortgage in 2 years will I have to tell the lender about the debt I owe on a business that, on paper at least, is still open? (It’s a sole proprietorship)

You said the accounts were in good standing. There is nothing wrong with carrying some debts, and many people claim that creditors seek a certain amount of debt to the amount of credit available to you. Part of it comes down to interest rates. If your credit card is a very low interest or maybe even 0% APR then with a larger down payment you would need to borrow less money from a bank for your home. Since the mortgage payment would have higher interest than the credit card, it would be more beneficial to lower your credit card payments not, and place a larger down payment on your home.