I have an app that has been downloaded on my phone that I didn’t purchase now I can’t update my apps because a billing problem
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If you mean that you are getting a 'problem with a previous purchase' message then that means that you owe iTunes money, and you won't be able to download anything else until that is paid : If your payment method is declined, or you have a billing issue with a previous purchase in the iTunes Store - Apple Support
I have an app that has been downloaded on my phone that I didn’t purchase
If you are saying that you've let somebody else use your phone and they downloaded it (or used your account on a different device and it's downloaded via 'automatic downloads') you could try contacting iTunes Support and see what they say : http://reportaproblem.apple.com or http://www.apple.com/support/itunes/ww
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