Exaggerated being in debt … (9)
I believe the answer is:
overdrawn
I believe this is a double definition.
'exaggerated' is the first definition.
('overdraw' can be a synonym of 'exaggerate')
'being in debt' is the second definition.
(having drawn too much money from a bank account)
(Other definitions for overdrawn that I've seen before include "The big spender's account may be so" , "got into debt" , "bust?" , "is no longer credited" , "venturing into red" .)