> ## Documentation Index
> Fetch the complete documentation index at: https://docs.methodfi.com/llms.txt
> Use this file to discover all available pages before exploring further.
# Debt Consolidation
> Discover eligible accounts, verify current balances, and disburse funds directly to creditors.
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](/guides/use-cases/lending/getting-started), where Connect discovered 6 liability accounts.
## Identifying Payable Accounts
From the Connect results, James has 6 liability accounts. Before building a consolidation plan, determine which accounts Method can actually send payments to by checking the `products` array on each account.
Only accounts with `payment` in their `products` list are eligible for payoff through Method. This reflects whether Method has a payment rail to that specific creditor.
```
GET /accounts/{acc_id}
→ check for "payment" in the products array
```
| Account ID | Creditor | Type | Balance | Payable via Method |
| ------------------- | ------------------- | ------------- | --------- | ------------------------------- |
| `acc_WqNhMRNVZjbKg` | Chase Freedom Flex | Credit Card | \$3,200 | `payment` available |
| `acc_nPvJM9KXRwQE4` | Discover it | Credit Card | \$1,800 | `payment` available |
| `acc_TmGPLxkz7Nrh6` | Toyota Motor Credit | Auto Loan | \$18,450 | `payment` available |
| `acc_RkFqVbD8HjQxP` | FedLoan | Student Loan | \$34,200 | Data only (`balance`, `update`) |
| `acc_YXDrjADGjC76U` | Upstart | Personal Loan | \$12,000 | `payment` available |
| `acc_KpLnWzFt9Mjd3` | Rocket Mortgage | Mortgage | \$245,000 | Data only (`balance`, `update`) |
Four of James's six accounts support payment disbursement through Method. The FedLoan student loan and Rocket Mortgage provide real-time data (via `update`) for DTI calculations and underwriting, but payment routing to those servicers isn't available through Method. If your consolidation product needs to pay off those accounts, you'd handle disbursement through your own payment rails.
Your product's underwriting logic determines which *payable* 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).
Always verify `payment` is in the account's `products` array before including an account in a consolidation plan. Attempting to create a payment to an account without payment coverage will return an error. Build your UI and underwriting logic to distinguish between accounts that are discoverable (visible via Connect) and accounts that are payable (eligible for disbursement through Method).
## Verifying Balances with Account Updates
Before calculating disbursement amounts, pull real-time balances to ensure accuracy. The [Application & Qualification](/guides/use-cases/lending/application-prefill) 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.
## Disbursing Funds to Creditors
Once your consolidation loan is approved and funded, use the [Payments API](/guides/payments/overview) to send funds directly to each creditor. Payments flow from your corporate funding account to the borrower's liability accounts.
### Pay Off the Chase Freedom Flex (\$3,200)
```bash theme={null}
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"
}'
```
```json theme={null}
{
"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"
}
```
### Pay Off the Discover it (\$1,800)
```bash theme={null}
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"
}'
```
```json theme={null}
{
"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](/guides/payments/lifecycle): `pending` → `processing` → `sent` → `settled`.
Payment descriptions are limited to **10 characters**. Use short labels like `"Payoff"`, `"Consolidat"`, or `"Paydown"`.
## Summary
The full debt consolidation flow combines four Method capabilities:
| Step | API | Purpose |
| ------------------ | ------------------------------------- | -------------------------------------------- |
| 1. Discover debts | `POST /entities/{ent_id}/connect` | Find all liability accounts |
| 2. Check coverage | `GET /accounts/{acc_id}` → `products` | Confirm which accounts support `payment` |
| 3. Verify balances | `POST /accounts/{acc_id}/updates` | Get real-time balances and rates |
| 4. Disburse funds | `POST /payments` | Route payments directly to payable creditors |
## What's Next
Monitor borrower liability, utilization, and delinquency signals continuously after origination.
Understand payment states, timelines, and webhook events.