I just found out when I updated my Akeeba Backup extension in Joomla that my PHP is outdated (vs php 5.2) It said the version I have installed won't be supported any more. How do I upgrade to the latest php version and how will it affect my Joomla site when I do?
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Your hosting company can do the update for you. You'd have to speak to them about it.
As to how it would affect your Joomla site, it won't affect the Joomla core as it's compatible with PHP 5.3. You'll have to make sure all your extensions are updated and compatible with PHP 5.3 though. Most developers have released compatible versions by now. It's pretty easy for a hosting company to revert back to PHP 5.2, so don't be scared of upgrading.