UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549


                                    FORM 10-Q

(Mark One)

  X      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
-----    EXCHANGE ACT OF 1934


         For the quarterly period ended March 31, 1999 or

         TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
         EXCHANGE ACT OF 1934

For the transition period from ___________ to ____________

Commission file number  0001059083                


                             NATIONWIDE CREDIT, INC.
     ----------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)

               Georgia                                     58-1900192
    ------------------------------                 ----------------------------
     (State or other jurisdiction                         (IRS Employer
    of incorporation or organization)                 Identification Number)


      6190 Powers Ferry Road, 4th Floor, Atlanta, Georgia          30339
-------------------------------------------------------------------------------
           (Address of principal executive offices)             (Zip Code)


Registrant's telephone number, including area code:     (770) 644-7452 

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by  Sections  13 or 15(d)  of the  Securities  Exchange  Act of 1934
during the preceding 12 months (or for such shorter  period that the  registrant
was  required  to file such  reports),  and (2) has been  subject to such filing
requirements for the past 90 days.

                                         Yes  X    No        




<PAGE>



                                TABLE OF CONTENTS



                                                                         PAGE


PART I.  FINANCIAL INFORMATION


ITEM 1. FINANCIAL STATEMENTS

Condensed Consolidated Balance Sheets
as of March 31, 1999 and December 31, 1998 ................................1

Condensed Consolidated Statements of Operations
for the Three Months Ended March 31, 1999 and March 31, 1998...............3

Condensed Consolidated Statements of Cash Flows
for the Three Months Ended March 31, 1999 and March 31, 1998...............4

Notes to Condensed Consolidated
Financial Statements as of March 31, 1999..................................5


ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF
         FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS ....................................................6


PART II.  OTHER INFORMATION



SIGNATURE.................................................................11


<PAGE>



PART I.  FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

NATIONWIDE CREDIT, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollar amounts in thousands)


<TABLE>
<CAPTION>

                                                                          March 31, 1999          December 31, 1998
                                                                            Unaudited                  Audited
                                                                         -----------------        ------------------
<S>                                                                      <C>                      <C> 
Assets
Current assets:
     Cash and cash equivalents                                           $      3,573             $      3,201
     Cash held for clients                                                      2,182                    2,279
     Accounts receivable, net of allowance of
             $1,187 and $951, respectively                                     11,102                   12,885
     Prepaid expenses and other current assets                                  1,221                    1,208
                                                                         ------------------       ------------------

Total current assets                                                           18,078                   19,573

Property and equipment, less accumulated
     depreciation of $5,736 and $4,575, respectively                            8,912                    9,859


Other assets, net:
     Goodwill, less accumulated amortization of $4,661                        101,209                  102,107
        and $3,763, respectively
     Other intangible assets, less accumulated amortization                     3,942                    4,301
        of $16,336 and $15,978, respectively
     Deferred financing costs, less accumulated amortization                    4,115                    4,238
        of $2,411 and $2,288, respectively
     Other assets                                                                 218                      237
                                                                         ------------------       ------------------

Total assets                                                             $    136,474             $    140,315
                                                                         ==================       ==================

<FN>
The  accompanying  notes  are an  integral  part of these  consolidated  balance
sheets.
</FN>
</TABLE>


<PAGE>


NATIONWIDE CREDIT, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollar amounts in thousands)


<TABLE>
<CAPTION>

                                                                            March 31, 1999         December 31, 1998
                                                                              Unaudited                 Audited
                                                                           -----------------       ------------------
<S>                                                                        <C>                     <C>
Liabilities and stockholder's equity

Current liabilities:
    Collections due to clients                                             $      2,182            $      2,279
    Accrued compensation                                                          5,636                   4,201
    Accounts payable                                                              1,793                   1,870
    Accrued severance and office closure costs                                    3,078                   1,845
    Other accrued liabilities                                                     2,660                   5,273
    Current maturities of long-term debt                                            250                     250
                                                                           -----------------       ------------------

Total current liabilities                                                        15,599                  15,718

Accrued severance and office closure costs                                          900                   2,400

Long-term debt, less current maturities                                         118,438                 118,500

Stockholder's equity:
Common stock - $.01 par value
  Authorized shares - 10,000 shares
   Issued and outstanding shares - 1,000 shares                                      --                      --
Additional paid in capital                                                       39,465                  39,465
Accumulated deficit                                                             (37,788)                (35,628)
Notes receivable - officers                                                        (140)                   (140)
                                                                           -----------------       ------------------
Total stockholder's equity                                                        1,537                   3,697
                                                                           -----------------       ------------------

Total liabilities and stockholder's equity                                     $136,474                $140,315
                                                                           =================       ==================

<FN>
The  accompanying  notes  are an  integral  part of these  consolidated  balance
sheets.
</FN>
</TABLE>



<PAGE>


NATIONWIDE CREDIT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollar amounts in thousands)

<TABLE>
<CAPTION>
                                                                                For the Three Months
                                                                                   Ended March 31,
                                                                        --------------------------------------
                                                                             1999                   1998
                                                                          Unaudited              Unaudited
                                                                        ---------------        ---------------

      <S>                                                                 <C>                    <C>     
      Revenue                                                             $   27,266             $  29,925

      Expenses:
            Salaries and benefits                                             18,432                17,039
                                                                              
            Telecommunication                                                    919                 1,359
                                                                                 
            Occupancy                                                          1,025                 1,158
                                                                               
            Other operating and administrative                                 3,277                 3,712
                                                                               
            Depreciation and amortization                                      2,416                 6,130
                                                                               
            Provision for employee severance and office closure                  243                    --
                                                                           ---------------        ---------------

      Total expenses                                                          26,312                29,398
                                                                              
                                                                        ---------------        ---------------
      Operating income                                                           954                   527
                                                                                 
      Interest expense                                                         3,114                 4,174
                                                                        ---------------        ---------------
      Loss before income taxes                                                (2,160)               (3,647)
                                                                              

      Provision for income taxes                                                  --                    --
                                                                        ---------------        ---------------
      Loss before extraordinary item                                          (2,160)               (3,647)
                                                                              

      Extraordinary loss on debt extinguishment                                   --                   783
                                                                        ---------------        ---------------

      Net loss                                                             $  (2,160)          $    (4,430)
                                                                        ===============        ===============


<FN>
The accompanying  notes are an integral  part of these  consolidated  financial
statements.
</FN>
</TABLE>


<PAGE>


NATIONWIDE CREDIT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollar amounts in thousands)

<TABLE>
<CAPTION>
                                                                                           For the Three Months
                                                                                              Ended March 31,
                                                                                  ----------------------------------------
                                                                                       1999                    1998
                                                                                     Unaudited               Unaudited
                                                                                  ----------------        ----------------
<S>                                                                                  <C>                  <C>
Operating activities
     Net loss                                                                        $  (2,160)            $    (4,430)
     Adjustments  to reconcile  net loss to net cash provided by operating
       activities:
         Depreciation and amortization                                                   2,540                   7,318
         Extraordinary loss on debt extinguishment                                          --                     869
         Other non-cash charges                                                            243                      --
      Changes in operating assets and liabilities:
         Accounts receivable                                                             1,783                  (3,070)
         Prepaid expenses and other assets                                                   6                     357
         Accrued compensation                                                            1,435                   1,156
         Accounts payable and other accrued liabilities                                 (3,199)                  3,958
                                                                                  ----------------        ----------------
     Net cash provided by operating activities                                             648                   6,158

Investing activities
      Acquisitions, net of cash acquired                                                    --                (157,270)
      Purchases of property and equipment                                                 (213)                 (1,117)
                                                                                  ----------------        ----------------
      Net cash used in investing activities                                               (213)               (158,387)

Financing activities
     Proceeds from acquisition facilities                                                   --                 125,000
     Capital contribution from Parent                                                       --                  38,975
     Proceeds from long-term debt                                                           --                 125,000
     Repayment of acquisition facilities                                                    --                (125,000)
     Repayment of long-term debt                                                           (63)                    (63)
     Debt issuance and acquisition costs                                                    --                  (6,437)
     Other                                                                                  --                    (268)
                                                                                  ----------------        ----------------
     Net cash (used in) provided by financing activities                                   (63)                157,207
                                                                                  ----------------        ----------------

     Increase in cash and cash equivalents                                                 372                   4,978

Cash and cash equivalents at beginning of period                                         3,201                   1,388
                                                                                  ----------------        ----------------

Cash and cash equivalents at end of period                                          $     3,573            $     6,366
                                                                                  ================        ================

Cash paid for interest                                                              $     5,661            $     1,242
                                                                                  ================        ================



<FN>
The  accompanying  notes are an integral  part of these  consolidated  financial
statements.
</FN>
</TABLE>




<PAGE>


NATIONWIDE CREDIT, INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


1.   Basis of Presentation

     The  accompanying  unaudited  consolidated  financial  statements have been
     prepared in accordance with generally  accepted  accounting  principles for
     interim  financial  information and with the  instructions to Form 10-Q and
     Article 10 of Regulation S-X. Accordingly, certain information and footnote
     disclosures  required  by  generally  accepted  accounting  principles  for
     complete  financial  statements  have  been  excluded.  In the  opinion  of
     management,  all  adjustments  (consisting  of normal  recurring  accruals)
     considered  necessary  for a fair  presentation  have  been  included.  All
     significant  intercompany accounts and transactions have been eliminated in
     the  consolidation.   The  accompanying  unaudited  consolidated  financial
     statements should be read in conjunction with the audited  consolidated
     financial  statements  of the Company for the year ended  December 31, 1998
     included in Form 10K, as amended.

     On December 31, 1997, NCI Acquisition Corporation (the "Buyer"), NCI Merger
     Corporation ("Merger Sub"), Nationwide Credit, Inc. (the "Company"),  First
     Data  Corporation  (the  "Seller") and its wholly owned  subsidiary,  First
     Financial Management  Corporation  ("FFMC"),  entered into an agreement and
     Plan of merger (the "Merger Agreement") pursuant to which Merger Sub merged
     with and into the Company,  with the Company as surviving corporation and a
     wholly owned subsidiary of the Buyer (the  "Transaction").  The Transaction
     was  accounted  for  under  the  purchase  method  of  accounting  with the
     consideration  and related fees of the acquisition  allocated to the assets
     acquired and  liabilities  assumed based on their  estimated fair values at
     the date of the acquisition.

     The acquisition and related fees were initially financed through borrowings
     of $125.0  million  against a $133.0  million  senior credit  facility (the
     "Acquisition  Facilities")  and a  contribution  of $40.4 million of equity
     capital (before related fees of $1.4 million).

     Operating  results for the three-month  period ended March 31, 1999 are not
     necessarily  indicative  of the results  that may be expected  for the year
     ending December 31, 1999.

     In June 1998, the Financial  Accounting Standards Board issued statement of
     Financial  Accounting  Standards No. 133  "Accounting  for  Derivative  and
     Hedging  Activities"  (SFAS 133).  SFAS 133  requires  companies  to record
     derivatives on the balance sheet as assets or liabilities at fair value. It
     is effective for financial statements for fiscal years beginning after June
     15, 1999. The Company is evaluating the impact of SFAS 133 on the Company's
     future  earnings  and  financial  position,  but does not  expect  it to be
     material. 

2.   Nature of Operations

     The  Company  is  among  the  largest  independent  providers  of  accounts
     receivable  management  services in the United States. The Company's client
     base is  comprised  of  companies  located  throughout  the  United  States
     primarily   in  the   financial   services,   telecommunications,   retail,
     institutional and healthcare industries.

3.   Long-Term Debt

     As  discussed  in Note 6 of the  Company's  Form  10-K for the  year  ended
     December 31, 1998, on March 17, 1999,  the Company  negotiated an amendment
     to the Revolving  Credit  Facility that revises the  cumulative  EBITDA and
     related   ratio   covenants  to  reflect  the  Company's   revised   EBITDA
     expectations. The Company was in compliance with these revised covenants as
     of March 31, 1999.

4.   Commitments and Contingencies

     The  Company is  involved  in certain  litigation  arising in the  ordinary
     course of business.  In the opinion of management,  the ultimate resolution
     of these matters will not have a material  adverse  effect on the Company's
     consolidated financial position or results of operations.

5.   Provision for Merger Costs, Employee Severance and Office Closure

     In 1998,  as a result of the  acquisition  of the Company and in connection
     with the  implementation  of an  operating  improvement  plan,  the Company
     accrued  estimated  costs of  approximately  $4.0 million  associated  with
     closing certain offices and branches ($2.3 million),  severance payments to
     employees   ($0.8   million),   and   relocation   costs  ($0.9   million).
     Specifically, the company is closing and/or reducing branches which are not
     operating at full capacity,  or whose  operations can be consolidated  with
     other branches.

     In December  1998, the Company  decided to relocate its corporate  offices.
     The Company has entered into a lease agreement for a new facility for these
     offices.  The  Company  recorded  a charge of $1.6  million  in 1998  which
     represents the future rent  obligations  under the existing lease offset by
     estimated sublease income less broker  commissions.  The Company expects to
     vacate its current headquarters facility during the second quarter of 1999.

     In March  1999,  the  Company  terminated  certain  employees  as part of a
     reorganization  and staff reduction.  The Company recorded a charge of $0.2
     million for employee severance.

     The amounts remaining at March 31, 1999 from these accruals are as follows:

                           Office closure             $    2,914
                           Employee severance                684
                           Relocation                        380
                                                      ===============
                                                      $    3,978
                                                      ===============


ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
              AND RESULTS OF OPERATIONS

Results of Operations-(first quarter of 1999 compared to first quarter of 1998)

Revenue. Total revenue decreased $2.6 million or 8.7% from $29.9 million for the
first quarter of 1998 to $27.3 for the first  quarter of 1999.  The decrease was
primarily  the result of (i) a  reduction  in  revenue  from the  Department  of
Education  ("DOE")  and the  General  Services  Administration  ("GSA")  of $3.6
million  resulting from the reduction of contracts with the Company from four to
one, a requirement of the DOE, and a delay in new  placements  under the new GSA
contract,  (ii) a  decrease  of  $0.5  million  revenue,  primarily  from  lower
placements  on  gas  credit  cards,   and  (iii)  a  decrease  in  revenue  from
telecommunications  account  placements of $1.8 million.  These  decreases  were
partially offset by increases in revenue of $0.2 million from American  Express,
$0.2 million from healthcare  account  placements,  $0.8 million from outsourced
pre-chargeoff management services and $1.8 million from on-site services.

Expenses.  Salaries and benefits expense increased $1.4 million or 8.2% to $18.4
million for the three  months  ended  March 31, 1999 from $17.0  million for the
three months ended March 31, 1998.  This increase is primarily the result of the
Company's   service  expansion  which  includes  on-site  call  center  staffing
and management services for a major telecommunications company.

Telecommunications  expense  decreased $0.5 million or 35.7% to $0.9 million for
the three  months  ended March 31, 1999 from $1.4 million for the same period in
1998.  The decrease is primarily  the result of lower  negotiated  long distance
rates and lower call volume.

Occupancy  expense  decreased $0.1 million or 9.1% to $1.0 million for the three
months ended March 31, 1999 from $1.1  million for the same period in 1998.  The
company closed its Atlanta data center and  consolidated  these  operations into
the Phoenix  data center in May 1998 and closed the Denver  facility in February
1999.

Other operating and  administrative  expense  decreased $0.4 million or 10.8% to
$3.3 million for the three months ended March 31, 1999 from $3.7 million for the
same  period in 1998.  The  decrease  is the result of the  continuation  of the
Company's operating improvement plan.

Depreciation  and amortization  expense  decreased $3.7 million or 60.7% to $2.4
million for the three months ended March 31, 1999 from $6.1 million for the same
period  ended March 31,  1998.  The  decrease  was  primarily  the result of the
amortization  of the value of existing  placements of $3.6 million for the three
months ended March 31, 1998, as compared to no amortization  for the same period
in 1999. The value of existing placements of $14.5 million was amortized over 12
months in 1998.

Provision  for Employee  Severance  and Office  Closure:  Provision for employee
severance and office closure for the three months ended March 31, 1999, was $0.2
million, all of which related to employee severance.

Operating  Income.  Operating income was $1.0 million for the three months ended
March 31, 1999,  an increase of $0.5 million or 100.0% from $0.5 million for the
same  period  in  1998.  This  increase  is  primarily  due to the  decrease  in
amortization expense of $3.7 million, a decrease in telecommunications  expenses
of $0.4 million and other operating and administrative expenses of $0.4 million,
offset by a decrease in revenue of $2.6 million, and an increase in salaries and
benefits of $1.4 million.

Interest Expense. Interest expense relating to the Term Loan Facility and Senior
Notes was $3.1  million for the three  months  ended March 31, 1999  compared to
$4.1  million for the same period in 1998 due to the  write-off  of $1.1 million
related to the cost of interim financing of the Transaction in January 1998.

Extraordinary  Loss. The extraordinary loss in the first quarter ended March 31,
1998 of $0.8 million  represents  the write-off of deferred debt issuance  costs
related to interim financing of the Transaction.

Net Loss.  The Company  incurred a net loss for the three months ended March 31,
1999 of $2.2  million  as  compared  to a net loss of $4.3  million  in the same
period of 1998.



Liquidity and Capital Resources

Cash  provided by  operating  activities  was $0.6  million for the three months
ended  March 31, 1999 as compared  to $6.2  million for the three  months  ended
March 31, 1998, a decrease of $5.6 million  primarily  due to cash interest paid
of $5.7  million on the  Senior  Notes and the Term Loan  Facility  in the first
quarter of 1999.

Cash used in investing  activities for the three months ended March 31, 1999 was
$0.2 million and $158.4  million for the three months ended March 31, 1998.  The
Company's  principal  use of cash in  investing  activities  during 1999 was for
capital  expenditures,   primarily  for  new  computer  and   telecommunications
equipment.  The Acquisition of $157.3 million in 1998 represents the purchase of
the Company (see Note 1).

Cash used in financing  activities  was $63,000 for the three months ended March
31, 1999  representing the required  quarterly  repayment of the seven-year term
loan facility.  Cash provided by financing activities was $157.2 million for the
three months ended March 31, 1998, representing the funding of the Transaction.

Substantially  all  the  agreements   relating  to  the  Company's   outstanding
indebtedness  contain covenants that impact the Company's  liquidity and capital
resources,  including  financial covenants and restrictions on the incurrence of
indebtedness and liens and asset sales.

On March 17, 1999, the Company  negotiated an amendment to the Revolving  Credit
Facility  that  revises the  cumulative  EBITDA and related  ratio  covenants to
reflect the Company's revised EBITDA expectations. The Company was in compliance
with the revised covenants as of March 31, 1999.

The ability of the Company to meet its debt  service  obligations  and to comply
with the  restrictive  and  financial  covenants  contained in the Senior Credit
Facility  and under the Notes  will be  dependent  on the future  operating  and
financial performance of the Company,  which will be subject in part to a number
of  factors  beyond the  control of the  Company,  such as  prevailing  economic
conditions, interest rates and demand for credit collection services.

Management  believes that, based on current levels of operations and anticipated
improvements  in operating  results,  cash flows from  operations and borrowings
available  under the Senior  Credit  Facilities  will be  adequate  to allow for
anticipated  capital  expenditures  for the next several years,  to fund working
capital  requirements and to make required payments of principal and interest on
its debt for the next  several  years.  However,  if the  Company  is  unable to
generate  sufficient  cash  flows  from  operations  in  the  future,  it may be
necessary for the Company to refinance all or a portion of its debt or to obtain
additional  financing,  but there can be no  assurance  that the Company will be
able to effect such refinancing or obtain  additional  financing on commercially
reasonable terms or at all.

Income Taxes

The Company has not recorded any tax benefit on its loss before income taxes for
the three  months  ended March 31, 1999 and 1998 as it is not "more  likely than
not" that the Company will be able to realize such benefits.



Year 2000

Until  recently,  computer  programs  were  written  to store only the digits of
date-related  information  in order to more  efficiently  handle and store data.
Thus, the programs were unable to properly distinguish between the year 1900 and
the year 2000. This is frequently referred to as the "Year 2000 Problem."

In 1997,  the Company  initiated a  company-wide  Year 2000  project  based on a
methodology  recommended  by an outside  consultant,  with a dedicated Year 2000
Project  Office and  Coordinator.  The  Company  has  completed  the  process of
defining,  assessing and converting, or replacing, various programs and hardware
to make them Year 2000 compatible.  The Company is currently  conducting  formal
compliance testing of the renovated applications, which cover all sensitive time
periods (e.g., the weeks straddling  December 1999 to January 2000, February 29,
2000, etc).

The total cost for the Year 2000 remediation is estimated at approximately  $1.5
million,  which includes $0.4 million for the purchase of new software that will
be capitalized  and $1.1 million that will be expensed as incurred.  The Company
incurred and expensed approximately $0.6 million for the year ended December 31,
1998 and  approximately  $0.2  million  during the three  months ended March 31,
1999,  primarily for  assessment of the Year 2000 issue,  the  development  of a
modification plan and programming costs.

The Year 2000 Problem goes beyond the Company's  internal  computer  systems and
requires coordination with clients, vendors, government entities and other third
parties to assure  that their  systems  and related  interfaces  are  compliant.
Accordingly,  the Company has implemented an aggressive  client outreach program
to analyze the data interfaces shared with customers, partners and suppliers and
to  communicate  specific  plans for their  needs.  Clients  sharing  electronic
interfaces  with the  Company  are  currently  being  contacted  and the company
expects such interfaces will be aligned by the end of the third quarter of 1999.
A vendor outreach program has also been implemented to identify critical systems
for supplied  products and services used, and to analyze the risk to the Company
and its customers should the products or services fail. The targeted  completion
date for this activity is June 30, 1999, with the last half of 1999 reserved for
auditing and testing  activities.  The procurement  process was revised in early
1998 to prevent  acquisition  of  non-compliant  products.  A new  procedure  is
currently being reviewed to ensure this process is effective.

The Company is also  addressing  the impact of Year 2000 on its  non-information
technology  systems,  which  include  examination  of each  location  to  ensure
lighting, elevators, copiers and fax machines function properly. This portion of
the Year  2000  project  is  expected  to be  completed  by the end of the third
quarter of 1999.  Additionally,  on-going  internal and external  communications
through  monthly  executive  reviews  and weekly  project  reviews  ensure  that
progress is monitored by senior management.

The  Company  recognizes  the need for  contingency  plans in all aspects of the
project.  Such  plans are now being  outlined,  particularly  with  vendors  and
clients,  with a targeted  completion  date of June 30, 1999.  As  circumstances
change,  these  contingency  plans will be adjusted  throughout the last half of
1999.

The Company  believes  that with  testing and  communication  with its  clients,
vendors  and  employees,  the  Year  2000  problem  will  not  pose  significant
operational  problems for its  computer  systems.  However,  if such testing and
analysis is not  completed in a timely  fashion or if the  Company's  clients or
significant suppliers do not successfully achieve Year 2000 compliance, the Year
2000  Problem  could have a material  impact on the  operations  of the  Company
including a reduction in revenue and profit.

The costs of the  project  and the date on which the  Company  believes  it will
complete the Year 2000  modifications  are based on management's best estimates,
which were derived utilizing  numerous  assumptions of future events,  including
the continued  availability  of certain  resources and other  factors.  However,
there can be no  guarantee  that these  estimates  will be  achieved  and actual
results could differ materially from those anticipated.

Forward-Looking Statements

This Form  10-Q and other  communications,  as well as oral  statements  made by
representatives of the Company, may contain "forward-looking  statements" within
the  meaning of the  Private  Securities  Litigation  Reform Act of 1995.  These
statements  relate to,  among other  things,  the  Company's  outlook for future
periods,  market forces within the industry, cost reduction strategies and their
results,  planned capital  expenditures,  long-term objectives of management and
other  statements of  expectations  concerning  matters that are not  historical
facts.

Predictions of future results contain a measure of uncertainty and, accordingly,
actual  results could differ  materially  due to various  factors.  Factors that
could  change  forward-looking  statements  are,  among  others,  changes in the
general economy, changes in demand for the Company's services and/or cyclicality
in the  industries  to which the Company's  services are rendered,  governmental
regulations and other  unforeseen  circumstances.  A number of these factors are
discussed in this Form 10-Q and in the Company's  annual report on Form 10-K for
the year ended December 31, 1998.

ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

<TABLE>
<CAPTION>
                                 Long Term Debt
                             Non-Traded Instruments
                              As of March 31, 1999
                                   (In $000's)

                                      1999     2000      2001       2002      2003      Thereafter   Total       Fair Value
<S>                                 <C>       <C>        <C>       <C>       <C>         <C>        <C>          <C>
Variable Rate:
Term Loan Facility :                 $ 250     $ 250      $ 250     $ 250     $250      $17,500    $18,750      $18,750
$18 million                          9.00%     9.00%      9.00%     9.00%     9.00%        9.00%
$.75 million                        10.50%    10.50%     10.50%    10.50%    10.50%       10.50%
Revolving Credit Facility              --        --         --        --        --           --         --           --

Fixed Rate:
Senior Notes due 2008:               $ --     $  --      $  --     $  --     $  --     $100,000   $100,000      $83,000
$100 million @ 10.25%                                                                     10.25%
</TABLE>

In January 1998,  the Company  implemented a financing  plan which  included the
issuance of $100 million  10.25%  Senior Notes due 2008 in a private  placement.
The Company  exchanged these notes for $100 million 10.25% Series A Senior Notes
due 2008 which are were registered under the Securities Act of 1933, as amended.
As part of the financing plan, the Company also entered into a credit  agreement
(the "Credit  Agreement") which provides for (1) a seven-year term loan facility
in the amount of $25 million (the "Term  Loan"),  and (ii) a six-year  revolving
credit facility (the "Revolving Credit Facility") of $5 million.

Amounts  outstanding  under  the Term Loan  Facility  and the  Revolving  Credit
Facility bear interest at the Company's  option of either (A) the Base Rate plus
the  Applicable  Margin or (B) the Eurodollar  Rate plus the Applicable  Margin.
Interest  payments are made quarterly for Base Rate loans.  Interest payments on
Eurodollar  loans  are made on the  earlier  of their  maturity  date or 90 days
depending on their term.  The table above presents the rates paid under variable
instruments at March 31, 1999.  Changes in the Base Rate or Eurodollar Rate will
impact the actual interest rates paid by the Company.

The Company's  primary market risk exposure with respect to these instruments is
that of  interest  rate risk.  The Base Rate for any given day for the Term Loan
Facility and Revolving Credit Facility is equal to the greater of (i) the Prime
Rate in effect on such day, (ii) the Base CD Rate in effect on such day plus 1%,
and (iii) the Federal Funds Effective Rate in effect on such day plus 1/2 of 1%.
The Company is vulnerable to changes in all of these rates.



PART II.  OTHER INFORMATION

Item 1.  None


<PAGE>


SIGNATURE


Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
Registrant, Nationwide Credit, Inc., has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.


NATIONWIDE CREDIT, INC.




/s/ Michael Lord
------------------------------------------------------------
Michael Lord
Chief Financial Officer

Dated:  May 7, 1999
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