We examine the response of individual borrowing to changes in liquid wealth exploiting a quasi-natural experiment. During the COVID-19 pandemic, the Chilean government allowed partial withdrawals from otherwise illiquid pension accounts. The policy’s nonlinear rule generates several kinks, which we use to estimate the elasticity of borrowing to liquid wealth through a regression kink design. We find substantial debt repayment among the population that is predominantly low-income, young, and female, particularly for individuals with higher debt and debt-to-income ratios within that population. We interpret these findings through a model in which the marginal cost of debt increases with borrowing.