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That's not even the proper use of that phrase. To be balls deep in debt would be a good thing because that means he's fucking his debt really well.
Even if it wasn't a sexual metaphor, your balls are only halfway up your body so he's basically saying "my debt is only half as bad as it could possibly be, because it's only up to my balls and not my ears."
I guess being a religious person can leave you a little uneducated in proper use of dirty colloquialisms.
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