Mass retailers may have skirted a full-blown spending freeze this year, but trouble is looming on the horizon.

The US moratorium on student loan interest has ended as of Friday, which means 45 million consumers will face a new monthly expense come October — dollars otherwise earmarked for new clothes, vacations and other discretionary purchases.

About 62% of people with student loans said they will cut their budgets when payments resume after the three-year pause that began in March 2020, according to Cowen’s consumer survey conducted in June. Of these consumers, 48% expect to spend less on clothes, 43% on personal care products and 34% on luxury goods.

Brands and retailers have already begun to brace themselves for the potential impact. Read the full story in our #linkinbio.

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