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Debt consolidation products follow a straightforward pattern with Method: discover the borrower’s existing debts, verify current balances, and route payments directly to each creditor. This guide continues the James Rodriguez scenario from Getting Started, where Connect discovered 6 liability accounts.

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Identifying Consolidation Targets

From the Connect results, James has the following debts eligible for consolidation:
Account IDCreditorTypeBalance
acc_WqNhMRNVZjbKgChase Freedom FlexCredit Card$3,200
acc_nPvJM9KXRwQE4Discover itCredit Card$1,800
acc_TmGPLxkz7Nrh6Toyota Motor CreditAuto Loan$18,450
acc_RkFqVbD8HjQxPFedLoanStudent Loan$34,200
acc_YXDrjADGjC76UUpstartPersonal Loan$12,000
acc_KpLnWzFt9Mjd3Rocket MortgageMortgage$245,000
Your product’s underwriting logic determines which debts to consolidate. A typical consolidation product might target the two credit cards ($5,000 combined), while a broader consolidation loan might include the personal loan and credit cards ($17,000 combined).

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Verifying Balances with Account Updates

Before calculating disbursement amounts, pull real-time balances to ensure accuracy. The Application & Qualification guide covers Account Updates in detail. The key insight is that balances can change daily as transactions post and payments clear — a balance from application time may be stale by funding time.

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Disbursing Funds to Creditors

Once your consolidation loan is approved and funded, use the Payments API to send funds directly to each creditor. Payments flow from your corporate funding account to the borrower’s liability accounts.

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Pay Off the Chase Freedom Flex ($3,200)

curl https://production.methodfi.com/payments \
  -X POST \
  -H "Method-Version: 2025-12-01" \
  -H "Authorization: Bearer sk_WyZEWVfTcH7GqmPzUPk65Vjc" \
  -H "Content-Type: application/json" \
  -d '{
    "amount": 320000,
    "source": "acc_hmap9mbgfLcf9",
    "destination": "acc_WqNhMRNVZjbKg",
    "description": "Payoff"
  }'

{
  "id": "pmt_Qm4RnKx8Wb",
  "source": "acc_hmap9mbgfLcf9",
  "destination": "acc_WqNhMRNVZjbKg",
  "amount": 320000,
  "description": "Payoff",
  "status": "pending",
  "estimated_completion_date": "2025-09-22",
  "source_trace_id": null,
  "source_settlement_date": "2025-09-16",
  "source_status": "pending",
  "destination_trace_id": null,
  "destination_settlement_date": "2025-09-22",
  "destination_payment_method": "electronic",
  "destination_status": "pending",
  "reversal_id": null,
  "error": null,
  "metadata": null,
  "created_at": "2025-09-15T15:15:42.318Z",
  "updated_at": "2025-09-15T15:15:42.318Z"
}

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Pay Off the Discover it ($1,800)

curl https://production.methodfi.com/payments \
  -X POST \
  -H "Method-Version: 2025-12-01" \
  -H "Authorization: Bearer sk_WyZEWVfTcH7GqmPzUPk65Vjc" \
  -H "Content-Type: application/json" \
  -d '{
    "amount": 180000,
    "source": "acc_hmap9mbgfLcf9",
    "destination": "acc_nPvJM9KXRwQE4",
    "description": "Payoff"
  }'

{
  "id": "pmt_Xp9TnLw3Vf",
  "source": "acc_hmap9mbgfLcf9",
  "destination": "acc_nPvJM9KXRwQE4",
  "amount": 180000,
  "description": "Payoff",
  "status": "pending",
  "estimated_completion_date": "2025-09-22",
  "source_trace_id": null,
  "source_settlement_date": "2025-09-16",
  "source_status": "pending",
  "destination_trace_id": null,
  "destination_settlement_date": "2025-09-22",
  "destination_payment_method": "electronic",
  "destination_status": "pending",
  "reversal_id": null,
  "error": null,
  "metadata": null,
  "created_at": "2025-09-15T15:16:08.774Z",
  "updated_at": "2025-09-15T15:16:08.774Z"
}
Both payments are now in pending status. Method will process the payments and deliver webhooks as each moves through the payment lifecycle: pending → processing → sent → settled.
Payment descriptions are limited to 10 characters. Use short labels like "Payoff", "Consolidat", or "Paydown".

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Summary

The full debt consolidation flow combines three Method capabilities:
StepAPIPurpose
1. Discover debtsPOST /entities/{ent_id}/connectFind all liability accounts
2. Verify balancesPOST /accounts/{acc_id}/updatesGet real-time balances and rates
3. Disburse fundsPOST /paymentsRoute payments directly to creditors

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What’s Next

Monitoring & Retargeting

Monitor post-funding account activity and identify retargeting opportunities.

Payments Lifecycle

Understand payment states, timelines, and webhook events.