Update:
So I actually went through my emails and iTunes and iCloud had sent me emails saying:
iTunes "On 05/01/2021 you are scheduled to be charged $0.99 for your 50 GB iCloud storage plan, but there is a problem with your payment information. Please update your payment information as soon as possible. If we cannot successfully charge your account, it will be downgraded to the free 5 GB plan and your service may be affected." Followed by instructions on how to update billing payment.
iCloud "On 05/01/21, we attempted to charge you for your 50 GB iCloud storage plan, but there is a problem with your payment information. Your account will be downgraded to the free 5 GB storage plan if we cannot successfully renew your subscription." Followed by instructions on how to update billing payment.
The iTunes email came before the iCloud one.
Obviously I still have the 50GB plan in my iCloud storage, this tells me that I may actually be in a grace period, and that apple has not downgraded it yet because they are still figuring out if the charge was successful or not. In a sense, Camelot was right on one point. No where on the email states that my account will be terminated or locked upon an unsuccessful charge nor does it state that I have been charged to the point where an unpaid balance would occur.
I can only hope they get the gist that I cannot successfully pay and just revert me back to the 5GB plan. I'll just believe that apple does not charge and set an unpaid balance AND revert the plan to a 5GB one at the same time. Hopefully.