I am really thinking about getting Xbox live but I am not understanding their "payment plans" I read everything off of xbox.com on the live section. I was talking to an acquaintance who has it and trying to understand it as best as possible...well on xbox.com they don't explain exactly if u need a credit card to pay for it yearly like I want since it will be cheaper than paying for it monthly. Just wanting some details on how to pay for it...I do have a visa card too...

Just get the xbox live starter kit. It comes with a mic a year of xbox live and a game. You will still need to enter in your credit card information.

Using your credit card you can also purchase MS points so you can utilize the marketplace (which if you don't already know contains xbla games, xbox 1 games, movies, tv shows, demos, trailers, etc.) Basically you can get 1600 pts ($20) and get 2 xbox 1 games or 2 xbla games. Im not sure on the movie prices but I believe it's cheaper than going to the store (you have the option to buy or rent, with much in "HD"). I say "HD" because it is border-line HD (better than other services that claim HD) but from my research isn't truly HD. I would give you a link but i read it a while ago. Sorry for such a lengthy reply, but one more thing, if you buy the MS points or LIVE service online with your credit card instead of in stores you avoid the sales taxes.