Cannot pay for something on Xbox with Account Balance

You would need to pay off the balance with a credit card or Paypal. Overdue balances cannot be paid with your Microsoft account balance.

Unfortunately he has to pay the outstanding balance before the code can be added to the account. The balance cannot be paid with a subscription code.

You cannot pay for overdue balances on Xbox/Microsoft as it is their policy. It is like paying for credit with credit. Most companies do not allow for this practice. You will unfortunately need to pay off the owing balance in order to get your account
back up to good standing. Sorry for the inconvenience.

If the account is past due and a balance owed you need to pay the owed balance. you cannot simply cancel with an owed balance then switch to gold and skip out on a debt.

You must pay it with the method of payment on file, you cannot use account balance to do so