No, 60% of South Africans Are Not Debt Free, Twitter Page Misinterpret Survey's Findings
A Twitter page, Africa Zone Facts, claimed 60% of South Africans are debt-free and cited Brandmapp as a source. However, the company behind the research says this is far from the truth.
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On 14 September 2022, Africa Zone Facts claimed South Africa created 60 000 new millionaires and 500 000 new taxpayers in the past year.
The Twitter account went on to allege that a study found 60% of South African consumers are living debt-free, which is a huge claim considering that the unemployment rate currently sits at 33.9%, according to Stats SA.
Africa Zone Facts cited Brandmapp, a landscape study of economically active South African adults, as the source of this information. The particular study by Brandmapp seems to have been published in 2021.
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While the idea that 60% of South Africans are living debt-free might paint South Africa in a good light, many social media users raised their concerns about the validity of the findings.
Are 60% of South Africans living debt-free? We checked
For starters, Brandmapp looks at a specific economical demographic when conducting surveys. The company behind Brandmapp, WhyFive, indicates that South African adults who participate in their studies have access to an internet connection.
According to Statista, about 41.19 million people have internet access in South Africa, which translates to 68.2% of the population with internet access.
Brandmapp also indicates that only 25 599 economically active adults in South Africa are approached to participate in their studies. These adults live in households earning more than R25 000 per month.
WhyFive also admits by doing so, it paints a unique picture of economically active South Africans and not the whole picture. According to AfricaCheck, Brandmapp only studies the top 30% of South Africans by income.
Director of storytelling at WhyFive, Brandon de Kock, told AfricaCheck that the information presented by Africa Zone Facts was nonsense.
De Kock indicated the company never said 60% of South Africans are debt-free, adding that they would never say such a thing.
De Kock also reiterated that Brandmapp only focuses on the top 30% of the wealthiest South Africans and not the entire country.
South Africans might be debt stressed and not debt-free
Even with the information that Brandmapp only surveys the top 30% of households, the claim that 60% of these South Africans are debt-free is still not true.
De Kock explained that 40% of the group surveyed indicated they were debt-stressed, while the other 60% stated they were not. Being debt-free and debt-stressed are two different things.
Debt-stressed consumers are people who feel stressed and or worried about their debts.
Consolidated Credit explained the term debt stress syndrome was coined by psychologists to describe people whose concerns about debt cause them emotional, mental and physical health problems.
According to the Banking Association of South Africa, Being debt-free means not owing any money to anyone. Brandmapp added that from their study, 22% of the participants indicated that they were debt-free.
However, it is important to note people in this group were either too young to have accumulated any debt or old enough to have settled their debts.
What's the verdict?
To conclude, Africa Zone Facts was incorrect in claiming that 60% of South Africans are debt-free and citing Brandmapp as their source.
Brandmapp data does not study all economically active households in the country but only households in the top 30% by income.
The Brandmapp data also indicated that, in truth, 60% of the participants indicated they were not debt-stressed, while only 22% said they were debt-free. This group is also not a reflection of the entire country.
AfricaCheck also notes that there isn't enough data that shows how many South Africans are debt-free.
No, living with your partner for 3 years is not the same as being married in community of property
In other news, Briefly News previously reported that social media users have been scratching their heads after a Twitter user alleged that if you live with your partner for three years as life partners, they are eligible to receive a share in your estate.
The user went on to allege that partners can claim each other's estates like couples married in a community of property would. Making it seem as though dating and living together for three years made you a married couple.
They cited a judgement handed down by the Constitutional Court on 31 December 2021 as the source of this new info.
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Source: Briefly News
