Why does my phone tell me im out of storage when im paying for more storage

icloud storage has nothing to do with the built in storage on your iPhone.

You can't increase the storage of an iPhone, whatever amount of storage you bought it with is all it will ever have.

What's the difference between device storage and iCloud storage? - Apple Support

jaylyn246 Said:

"Why does my phone say i’m out of storage when i’m paying for more storage ?"

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What type of storage? Internal or iCloud?

Troubleshooting iPhone Storage:

Try Removing Data from the iPhone itself...

Internal storage cannot be upgraded. It is what it is. So, the maximum internal storage capacity never increases, even if you upgraded your iCloud plan.

So, what to do...

Use my two User Tips:

• How to Clear Space from your Mobile Device, and What to Clear: - User Tip
• How to Clear "Other" in your iPhone's Storage - Use Backup - User Tip