What does it mean when it says 'use this credit card for outstanding balance of.....'?

hello. i got a gift card for itunes and it wouldnt let me use it. its on my account but i cant buy anything. everytime i try it takes me to my billing and i have a credit card on the info but i dont use it anymore and i dont know how to take it off. also its telling me that i have and outstanding balance of $39.06 and i had a limit on my credit card and i only use that or a gift card so i dont understand how i owe that much. can you please help me with this problem?
thank you!
Brittani Kinchen

The problem is that iTunes allowes you to spend a certain amount on Gift cards/prepaid cards even if there is only $1 balance left on the card. It doesn't chack to see how much money you have left on the card, only that it can pre authorize for $1 only. Purchases of about $37 or less aren't charged right away at purchase allowing these negative balances.

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