According to a new survey by investment Schroders, around a third of UK adults have raided their piggy-banks in the past year.  In some cases this is simply to have money to live on, in other cases it can be to help shorten the life of existing debts before placing the remaining debts into consolidation.

As the tough financial climate continues to leave many people in need of assistance with their financial woes, the survey estimates that around £60 billion has been raided from savings accounts, with an average withdrawal of around £4,600 per person.

Not everybody had savings to raid, and particularly now, the depositing of new savings has slowed dramatically.  The British Bankers Association says that during the previous three months, a noticeable slowdown has occurred in personal deposits across savings and current accounts.

The Schroders report suggests that more women have had to resort to this tactic than men, as an increasing number of women are left resorting to claiming bankruptcy.  Those nearing retirement or whom are already of retirement age are more likely to withdraw savings now to try and cope with an income shortfall.

With the Bank of England predicted to keep the base interest rate for the next year, savers will face a challenge in trying to accrue decent interest in any UK banks.  Foreign-owned banks are now targeting UK savers with competitive offers of savings accounts.  In some cases this can be a good deal for those looking to accrue interest on their savings.

Not all of these banks are necessarily all that they seem, however.  UK savers are reminded to check for a British Banking license for any foreign savings company who might approach them.

If you are struggling with existing debts and have access to savings or other funds, why not write off debts with a Full and Final Settlement?  You may be able to significantly reduce your debts and even fully pay off existing debts.