I have just bought a App Store gift card and I redeemed it. When I was going to buy an app that cost money a notification popped up that said I need to answer my security questions. I made my account a long time ago and have forgotten the answers

I forgot the answers to my security questions so I sent the email to my rescue email to reset the questions. I got the email and pressed Verify Now and it redirected me to the apple site where I would put in my Apple ID and password. I put it in correctly as I have checked that I'm using the right ID and password. I have even reset my password just in case I had put in my old one wrong. everytime it still says I have an invalid adress (which it is obviously not) and I don't know what to do. I don't want to waste the money I just put into my account.

It sounds like a cred hold was placed on your account for the free apps.  See:
iTunes Store: About credit-card authorization holds
I would wait until you get the email receipt(s) for your purchases.  If yu were charge more than you think then:
How to report an issue with Your iTunes Store purchase

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