Do not put your credit card/paypal as payment method and remove it after a purcharse

If PayPal is your only payment method then you will need to make sure you have an active credit / debit card on file on the Microsoft Billing site in order to be able to successfully use PayPal with the XBOX Live services. You may want to remove your PayPal
account completely and make sure there are absolutely no old payment methods on file. In this sort of situation I would remove all payment methods from the account and add a new payment method if possible (verified credit card/debit card - not prepaid card)
and then try to make the purchase.

You need to put a valid payment method in credit/debit card or PayPal as it is a subscription contract that renews after the introductory period.

My name is Fernando I'm an independent consultant, I'm happy to help

This could mean that the billing address for your payment option is incorrect. To fix this issue, make sure the correct billing address is listed on the payment method you're trying to use:
Sign in to your Microsoft account.
Microsoft account
Click Payment & Billing, then Payment Options.
Under Payment Methods, select the payment method you tried to use to make the purchase.
For credit cards, debit cards, and direct debit, do the following:
Select View or edit card and adjust the billing address as needed.
Select Save when done.
For PayPal, do the following:
If the email address is incorrect for the PayPal account, select Remove Account.
Select Add a new payment method.
Select Credit Card or PayPal.
Follow the instructions to set up your credit card, debit card or re-add your PayPal account as a new payment option using the correct billing address.
Note Edit debit cards as you would a credit card (not available in all locales).
You will now be able to complete the transaction.

Hope I helped and see you soon

Do you have a payment method (credit card/Paypal) on file?

Do you have a payment method on file (credit card or Paypal)?