The invention relates to the field of wire cutting equipment, in particular to a waste wire collection device for wire cutting and a using method thereof. The waste wire collection device for wire cutting comprises a bottom plate. A motor is arranged on the bottom plate. A wire take-up and pay-off device is arranged on an output shaft of the motor. An adjusting device is arranged corresponding to the wire take-up and pay-off device. The output shaft of the motor is further provided with a second gear engaged with a first gear on a reciprocating lead screw rotary shaft in the adjusting device. The waste wire collection device for wire cutting is simple in design structure and convenient to operate, paying-off is achieved through an electrically driven mechanical device instead of original manual operation, the workloads and cost are reduced, the working efficiency is improved, only 2-3 minutes are needed for operation generally, and collected waste wires are small in size and convenient to store.