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