Yes, but you still need a verified account, so it will take from your account balance BUT you need to have a cc attached to the account.
Just now paid to godaddy with balance amount in Paypal working fine Mine is a verified account with credit card attached Anyways payment was done from my PAYPAL Balance to Godaddy
I also just purchased a domain at Godaddy.com whereas mine paypal account is verified by bank account and i have debit card attached to it. So this proves that we can purchase at godaddy with a debit card or cc. But one thing is important that a card is necessarily requiread attached to ur paypal account to make purchases at Godaddy.
I think its better to pay off any domain/hosting and other payments you need to make in next few months now so if paypal stop payments from paypal balance,You will have time to find alternates.
Well Like many other web sites that accepts payment through PayPal, godady has also set their system in such a manner that you are not allowed to purchase through their web site untill you attach valid credit card to your account. Thanks