how do I clear a "Not Enough Storage" message on my iphone 4s

I have a message that will not clear it says" Not Enough Storage" " This Iphone cannot be backed up because there is not enough iCloud storage available. You can manage your storage in Setting." There is a Close button and Settings button but neight of these do anything. The phone seems locked up.

When I go to the cloud there is only contact saved and not that may.

Any ideas how to clear the phone without doing a Restore. I dont want to lose all my Apps.