Apple iphone update/storage problems?

I can't update phone as I need to free space. However I purchased extra out storage and I have 12.0gb free. Why can't it use that space or how do I get
Other apps to use the cloud space? That's the only reason I spent £15
On the extra storage and it's not helped at all.

Dude wast of money. First of all, it needs real HDD space to update, and i think almost everyone has forgotten how we used to have to update before ios 6. FROM iTUNES! Just connect your iPhone to iTunes and it will update even if you have no free space on your phone.

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