There is a billing problem with a previous purchase. Please update your payment method. Because of this i cant download even free apps

I cant dowload even free apps. It's asking for the card details and then Your payment method was declined. Please enter another payment method appears

I had this same problem.  Even though I updated and even changed CC's in my iTunes account and there was no balance on my account....THERE WAS A BALANCE on my daughter's account that through the family network was tied to mine as the family manager.  Even though all the accounts are paid by my card, I can't see or clear balances on other family members.
My daughter had to go into her account and enter (or have me enter) the 3 digit security code from the current (updated) cc to clear her balance and cease this darned error.
Now we can updated, download, and so on.  What a pain.
In short if you are getting this error, especially if you CC information recently changed (expiration, number, sec code)... make sure none of your connected family members made any purchases between the time the CC info changed and you updated the iTunes account.  If they did...THEY MUST CLEAR THEIR BALANCE to clear the error message.
Good luck.

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