HT1918 Change country and change payment info contradict each other

Hi, I have changed country of residence. When I want to change the country settings, it says: fix the payment info. When I want to change payment info, it says: this payment not allowed in this store. How should I resolve this paradox? Thanks!

Alas, the assistance offered from iTunes support has only made the situation worse.
They suggested I purchase an iTunes gift card to clear the balance on my account and therefore be able to change the country and payment card. 
So I bought €25 of gift card and now iTunes refuses to accept the credit....because it's not denominated in British Pounds.
Original iTunes representative now refusing to respond to my query.

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