ITunes/App Store won't let me complete my purchase,

says there is billing problem with previous order and to please update payment plan

Have you logged into your account and checked/updated your payment details ? If there was a problem with your last purchase and iTunes wasn't able to collect its payment, then you won't be able to buy/download anything else from the store until you have a valid payment details on your account and what you owe has been paid off.
You should be ableto check/update your payment details on your account via your computer's iTunes : go into the Store > View Account menu option and log into your account, and on your account's details page there should be a payment link.  If you are doing it on an iOS device (iPad, iPhone or iPod Touch) then tap on your id in Settings > iTunes & App Store (Settings > Store on iOS 5 and below) and tap on 'View Apple ID' on the popup and log into your account  - that should also give you a payments link on your account's page.
Changing payment info : http://support.apple.com/kb/HT1918

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