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 June 30, 2000  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  333-57249
                       ----------


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

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


2015 Vaughn Road, Building 300, Kennesaw, GA               30144
-------------------------------------------------------------------------------
(Address of principal executive offices)                 (Zip Code)


Registrant's telephone number, including area code:     (770) 933-6659
                                                       ---------------

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>


16

1


                                                  TABLE OF CONTENTS


<TABLE>
<CAPTION>
                                                                                                   PAGE
<S>                                                                                                <C>

PART I.  FINANCIAL INFORMATION

         ITEM 1.  FINANCIAL STATEMENTS

         Consolidated Balance Sheets
           as of June 30, 2000 and December 31, 1999 ................................................2

         Consolidated Statements of Operations
               for the Quarters ended June 30, 2000 and June 30, 1999,
           and  the Six Months Ended June 30, 2000 and June 30, 1999 ................................4

         Consolidated Statements of Cash Flows
           for the Six Months Ended June 30, 2000 and June 30, 1999..................................5

         Notes to Consolidated Financial Statements as of June 30, 2000..............................6

         ITEM 2.            MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                            FINANCIAL CONDITION AND RESULTS
                            OF OPERATIONS ...........................................................9

         ITEM 3.           QUANTITATIVE AND QUALITATIVE  DISCLOSURES
                                      ABOUT MARKET RISK.............................................14

PART II.  OTHER INFORMATION

         ITEM 6.           EXHIBITS AND REPORTS ON FORM 8-K

                           A.  EXHIBITS:

                               27  Financial Data Schedule

                           B.  REPORTS ON FORM 8-K

                               No  exhibits  or  reports  on Form 8-K were filed
                               during the three months ended June 30, 2000


SIGNATURE...........................................................................................15

</TABLE>

<PAGE>







PART I.  FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

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


<TABLE>
<CAPTION>

                                                                             June 30,             December 31, 1999
                                                                               2000                    Audited
                                                                            Unaudited
                                                                         -----------------        ------------------
<S>                                                                      <C>                     <C>
Assets
Current assets:
     Cash and cash equivalents                                           $       6,909            $         --
     Cash held for clients                                                         848                   1,090
     Accounts receivable, net of allowance of
             $418 and $351, respectively                                        17,705                  18,209
     Prepaid expenses and other current assets                                   5,934                   3,709
                                                                         ------------------       ------------------

Total current assets                                                            31,396                  23,008

Property and equipment, less accumulated
     depreciation of $12,197 and $8,946, respectively                           18,057                  14,852


Other assets, net:
     Goodwill, less accumulated amortization of $8,823
           and $7,058, respectively                                             97,048                  98,812
     Other intangible assets, less accumulated amortization
           of $18,128 and $17,412, respectively                                  2,150                   2,867
     Deferred financing costs, less accumulated amortization
           of $3,157 and $2,811, respectively                                    3,809                   4,063
     Other assets                                                                   39                      82
                                                                         ------------------       ------------------

Total assets                                                             $     152,499            $    143,684
                                                                         ==================       ==================


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


<PAGE>


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


<TABLE>
<CAPTION>



                                                                            June 30, 2000          December 31, 1999
                                                                              Unaudited                 Audited
                                                                           -----------------       ------------------
<S>                                                                        <C>                    <C>
Liabilities and stockholder's deficit

Current liabilities:
    Collections due to clients                                             $        848            $      1,090
    Accrued compensation                                                          4,065                   4,557
    Accounts payable                                                              4,867                   6,468
    Accrued severance and office closure costs, current                             582                   1,139
    Restructuring accrual, current                                                1,274                      --
    Other accrued liabilities                                                     9,531                   6,525
    Deferred revenue                                                                333                     500
    Current portion of capital leases                                               408                     293
    Current portion of notes payable                                                 56                      60
    Current maturities of long-term debt                                            813                     750
                                                                           -----------------       ------------------

Total current liabilities                                                        22,777                  21,382

Accrued severance and office closure costs, long-term                               585                     843
Capital lease obligations, less current portion                                     778                     359
Long-term debt, less current maturities                                         129,382                 121,308
                                                                           -----------------       ------------------

Total liabilities                                                               153,522                 143,892

Stockholder's deficit:
Common stock - $.01 par value
  Authorized shares - 10,000 shares
   Issued and outstanding shares - 1,000 shares                                      --                      --
Additional paid in capital                                                       49,465                  43,465
Accumulated deficit                                                             (50,348)                (43,533)
Notes receivable - officers                                                        (140)                   (140)
                                                                           -----------------       ------------------
Total stockholder's deficit                                                      (1,023)                   (208)
                                                                           -----------------       ------------------

Total liabilities and stockholder's deficit                                    $152,499                $143,684
                                                                           =================       ==================


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



<PAGE>


NATIONWIDE CREDIT, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollar amounts in thousands)
<TABLE>
<CAPTION>

                                                                   For the Three Months               For the Six Months
                                                                      Ended June 30,                    Ended June 30,
                                                              -------------------------------    ------------------------------
                                                                  2000            1999               2000            1999
                                                                Unaudited       Unaudited          Unaudited      Unaudited
                                                              -------------- ----------------    -------------- ---------------

<S>                                                             <C>            <C>               <C>            <C>
Revenue                                                         $   33,821     $   27,884        $   67,314     $   55,150

Expenses:
      Salaries and benefits                                         22,179         18,492             44,194         36,924
      Telecommunication                                              1,173          1,179              2,492          2,098
      Occupancy                                                      1,603          1,108              3,127          2,133
      Other operating and administrative                             5,502          3,426             10,297          6,703
      Depreciation and amortization                                  2,929          2,262              5,733          4,678
      Provision for employee severance, office closure
              and other unusual costs                                   --             --                 --            243
      Restructuring expense                                          1,274             --              1,274             --
                                                              -------------- ----------------    -------------- ---------------

Total expenses                                                      34,660         26,467             67,117         52,779

                                                              -------------- ----------------    -------------- ---------------
Operating (loss)  income                                              (839)         1,417                197          2,371
Interest expense                                                     3,524          3,104              7,011          6,218
                                                              -------------- ----------------    -------------- ---------------
Loss before income taxes                                            (4,363)        (1,687)            (6,814)        (3,847)

Provision for income taxes                                              --             --                 --             --
                                                              -------------- ----------------    -------------- ---------------
Net loss                                                         $  (4,363)     $  (1,687)         $  (6,814)     $  (3,847)
                                                              ============== ================    ============== ===============


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


<PAGE>


NATIONWIDE CREDIT, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollar amounts in thousands)
<TABLE>
<CAPTION>

                                                                                            For the Six Months
                                                                                              Ended June 30,
                                                                                  ----------------------------------------
                                                                                       2000                    1999
                                                                                     Unaudited               Unaudited
                                                                                  ----------------        ----------------
<S>                                                                                  <C>                     <C>
Operating activities
     Net loss                                                                        $   (6,814)             $   (3,847)
     Adjustments  to  reconcile  net  loss to net  cash  used in  operating
       activities:
         Depreciation and amortization                                                   6,491                   4,929
             Other non-cash charges                                                      1,480                     243
      Changes in operating assets and liabilities:
             Accounts receivable                                                           437                    (851)
             Prepaid expenses and other assets                                          (2,596)                   (782)
             Accrued compensation                                                         (492)                 (1,016)
             Accounts payable and other accrued liabilities                                285                  (1,396)
                                                                                  ----------------        ----------------
     Net cash used in operating activities                                              (1,209)                 (2,720)

Investing activities
      Purchases of property and equipment                                                (5,728)                 (1,005)

Financing activities
     Capital contribution                                                                6,000                      --
     Net proceeds from revolving credit facility                                         8,229                   3,450
     Repayment of other long-term debt                                                    (291)                   (125)
     Debt issuance costs                                                                   (92)                     --
                                                                                  ----------------        ----------------
     Net cash provided by financing activities                                          13,846                   3,325

     Increase (decrease) in cash and cash equivalents                                    6,909                    (400)

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

Cash and cash equivalents at end of period                                          $     6,909             $     2,801
                                                                                  ================        ================

Supplemental disclosures of cash flow information:
     Cash paid for interest                                                         $     6,007             $     6,100
     Non-cash activities:
           Acquisition of leasehold improvements through
                  capital leases                                                   $        727           $         --



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




<PAGE>


NATIONWIDE CREDIT, INC.
NOTES TO 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, 1999
     included in Form 10-K.

     Certain  amounts  for the  three  months  ended  March  31,  2000 have been
     reclassified  to  conform  with  the  June  30,  2000  presentation.  These
     reclassifications  had no significant impact on previously reported results
     of operations or stockholder's equity.

     Operating  results  for the  six-month  period  ended June 30, 2000 are not
     necessarily  indicative  of the results  that may be expected  for the year
     ending December 31, 2000.

     In June 1998, the Financial  Accounting  Standards  Board  ("FASB")  issued
     Statement  of  Financial  Accounting  Standards  No.  133  "Accounting  for
     Derivative and Hedging  Activities"  (SFAS No. 133).  SFAS No. 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, 2000, as amended by SFAS No. 137.

     In June 2000, the FASB issued Statement of Financial  Accounting  Standards
     No. 138, "Accounting for Certain Derivative Instruments and Certain Hedging
     Activities"  ("SFAS No. 138).  This  statement  establishes  accounting and
     reporting   standards  for  derivative   instruments,   including   certain
     derivative   instruments  embedded  in  other  contracts  and  for  hedging
     activities.  SFAS No. 138 also addresses issues when  implementing SFAS No.
     133.  This  statement  should be adopted  concurrently  with SFAS No.  133.
     Management is evaluating the impact of SFAS No. 133 and SFAS No. 138 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 and Stockholder's Equity

     On April 18, 2000,  the Company  negotiated  an amendment to its  revolving
     credit  facility  and term  loan  (the  "Bank  Facilities")  to  create  an
     additional $6.0 million of borrowing capacity to fund the Company's working
     capital  needs.  Specifically,  the  existing  line  of  credit  under  the
     revolving credit facility was increased from $6.5 million to $12.5 million,
     maturing  January  2004 and  bearing  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.  The  amendment  also  revised  certain
     financial  covenants.  The  Company  was in  compliance  with  the  revised
     financial  covenants as of June 30,  2000.  The Company will have to have a
     significant increase in EBITDA to achieve third and fourth quarter covenant
     levels.

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 Employee Severance, Office Closure, Restructuring Expense and
     other Unusual Costs

     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).  The
     corporate  offices were relocated in August 1999 and branches that were not
     operating at full  capacity  were reduced or were  consolidated  with other
     branches. In 1999, the Company incurred $1.1 million of other unusual costs
     related to a potential  name  change and  development  of a  marketing  and
     strategic  plan  related  to  a   repositioning   of  the  Company  in  the
     marketplace.  In addition,  the Company  refined its  estimates in 1999 and
     reduced the provision for office closure by $0.5 million as a result of the
     Company experiencing more favorable sub-leasing results.

     As of  June  30,  2000,  substantially  all  charges  related  to  employee
     severance  and  relocation  had been  incurred.  In the first six months of
     2000,  the Company  recorded a charge of $0.8 million  against the existing
     accrual,  mostly  related to office closure  costs.  The remaining  accrued
     office  closure  costs  of $1.2  million  as of  June  30,  2000  represent
     estimated future rent obligations under cancelled leases.

     In order to reduce costs and improve  productivity  and asset  utilization,
     the Company  decided to consolidate  and reorganize  its  operations.  This
     restructuring plan was formalized by the end of the second quarter of 2000.
     The plan involves the Company removing itself from the directory assistance
     operations for a telecommunications  company, as it was not considered part
     of the core  business  of the  Company.  In  addition,  the  plan  involves
     consolidation  of  its  collections   systems  and  reorganization  of  its
     information  technology  operations  from a remote  location  to  corporate
     headquarters.   Due  to  reorganization   and  shutdown  of  the  directory
     assistance operations,  the plan includes the termination of 172 employees.
     All employees were notified as of June 30, 2000. The plan also includes the
     relocation of certain  information  technology  personnel who were notified
     and agreed to the relocation in the second quarter of 2000.

     The Company  recorded a total estimated  charge of $1.3 million to complete
     this plan, included in restructuring expenses.  These charges include costs
     for  severance and benefits to terminate  and relocate  employees,  and the
     write-off of certain  software and hardware.

     The  following  table  reflects the  components  of the  significant  items
     included in restructuring  charges for the three months ended June 30, 2000
     (amounts in thousands):

                                                          Three Months Ended
                                                              June 30, 2000
                                                         ----------------------
     Directory assistance severance costs                     $    152
     Corporate and field severance costs                           441
     Relocation costs                                              415
     Write-off hardware/software                                   266
                                                          ----------------------
     Total accrued restructuring costs and expenses           $  1,274
                                                          ======================

     In the last  quarter of 1999 and the first six months of 2000,  the Company
     expanded  its   pre-chargeoff   services  to  provide  more   comprehensive
     collection solutions for its clients.  This expansion required the addition
     of two new  facilities.  Accordingly,  in the first six months of 2000, the
     Company  incurred $1.1 million for the costs of such expansion  activities,
     which are  included in  operating  expenses,  under  "Other  operating  and
     administrative", "Salaries and benefits", and "Occupancy".

<PAGE>


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

Results of Operations

(Six months ended June 30, 2000 compared to six months ended June 30, 1999)

Revenue.  Total revenue  increased $12.2 million or 22.1% from $55.2 million for
the six months  ended June 30, 1999 to $67.3  million  for the six months  ended
June 30,  2000.  The  increase  was  primarily  the result of (i) a $6.1 million
increase in revenue  from  telecommunications  account  placements,  (ii) a $5.8
million increase in revenue from outsourced  pre-charge-off management services,
(iii) a $4.0 million  increase in revenue from consumer and  financial  services
account  placements,  (iv)  a  $1.0  million  increase  in  revenue  from  legal
collections, partially offset by a $2.7 million decrease in revenue from on-site
call center  management  services for a major  telecommunications  company and a
$2.0 million decrease in revenue from healthcare and institutional  services. In
the first  quarter of 2000,  the Company  gave notice of its intent to terminate
its service offering of directory assistance operations for a telecommunications
company, as it was not considered part of the core business of the Company.  The
Company  ceased  this  operation  by July  30,  2000.  Revenues  generated  from
directory  assistance services in 1999 were less than 10% of the Company's total
revenues for the year; the impact on net income is expected to be minimal in the
year 2000.

Expenses. Salaries and benefits expense increased $7.3 million or 19.7% to $44.2
million for the six months  ended June 30,  2000 from $36.9  million for the six
months  ended  June 30,  1999.  This  increase  is  primarily  the result of the
Company's service expansion in outsourced pre-charge-off management services and
telecommunications,  including  the  impact  of a  parallel  ramp-up  of two new
facilities in March and April 2000 (approximately $0.2 million).

Telecommunications  expense  increased $0.4 million or 18.8% to $2.5 million for
the six months  ended June 30,  2000 from $2.1  million  for the same  period in
1999.  The  increase is  primarily  the result of  increases  in activity due to
service  expansion  and the addition of new  facilities  in the first and second
quarter of 2000.

Occupancy  expense  increased  $1.0 million or 46.7% to $3.1 million for the six
months  ended June 30, 2000 from $2.1  million for the same period in 1999.  The
increase  is the  result of annual  rent  escalations  and the  addition  of new
facilities in the fourth  quarter of 1999 and the first  quarter of 2000.  These
new facilities provide the needed capacity for future growth.

Other operating and  administrative  expense  increased $3.6 million or 53.6% to
$10.3  million for the six months  ended June 30, 2000 from $6.7 million for the
same  period  in 1999.  The  increase  is the  result of the  Company's  service
expansion and staffing costs.

Depreciation  and amortization  expense  increased $1.0 million or 22.6% to $5.7
million for the six months  ended June 30,  2000 from $4.7  million for the same
period  ended  June  30,  1999.   The  increase  was  primarily  the  result  of
depreciation  on capital  assets  acquired  subsequent to the second  quarter of
1999.

Restructuring  charge.  In order to reduce  costs and improve  productivity  and
asset  utilization,  the  Company  decided to  consolidate  and  reorganize  its
operations.  This  restructuring  plan was  formalized  by the end of the second
quarter  of  2000.  The plan  involves  the  Company  removing  itself  from the
directory assistance operations for a telecommunications  company, as it was not
considered  part of the core  business of the  Company.  In  addition,  the plan
involves  consolidation  of its collections  systems and  reorganization  of its
information   technology   operations   from  a  remote  location  to  corporate
headquarters.  Due to  reorganization  and shutdown of the directory  assistance
operations,  the plan includes the  termination of 172 employees.  All employees
were  notified as of June 30, 2000.  The plan also  includes the  relocation  of
certain information technology personnel and the disposal of certain information
technology hardware and software.

The  Company   recorded  a  total  charge  of  $1.3  million  to  complete  this
restructuring,  included in restructuring expenses.  These charges include costs
for  severance  and  benefits  to  terminate  and  relocate  employees,  and the
write-off of certain software and hardware.

Operating  Income.  Operating  income was $0.2  million for the six months ended
June 30,  2000, a decrease of $2.2  million or 91.7 % from  operating  income of
$2.4 million for the same period in 1999.  This decrease is primarily the result
of an  increase  in revenue of $12.2  million  with an  offsetting  increase  in
expenses of $14.3 million. Start-up costs related to the Company's growth and to
the opening of two new  facilities  including  the impact of  parallel  staffing
costs temporarily  reduced margins in the six month period as capacity was added
to meet the projected  increase in business  activity;  the  restructuring  plan
decided  in the second  quarter  of 2000 also  impacted  operating  income.  The
combined effect of these two non-recurring events was $2.4 million.

Interest  Expense.  Interest expense relating to the Term Loan Facility,  Senior
Notes and capital leases was $7.0 million for the six months ended June 30, 2000
compared  to $6.2  million  for the same  period in 1999,  an  increase  of $0.8
million. This increase is the result of (i) an increase in interest rates on the
term loan facility, (ii) borrowings of $8.2 million against the revolving credit
facility and (iii) interest paid on capital lease obligations incurred since the
second quarter of 1999.

Net Loss. The Company incurred a net loss for the six months ended June 30, 2000
of $6.8  million as compared to a net loss of $3.8 million in the same period of
1999.

(Three months ended June 30, 2000 compared to three months ended June 30, 1999)

Revenue.  Total  revenue was $33.8  million for the three  months ended June 30,
2000,  as compared to $27.9 million for the three months ended June 30, 1999, an
increase of $5.9 million or 21.3%.  The increase was primarily the result of (i)
an  increase  in  revenue  of  $3.2  million  from  telecommunications   account
placements  (ii)  an  increase  in  revenue  of  $3.0  million  from  outsourced
pre-charge-off management services, (iii) an increase in revenue of $2.6 million
from consumer and financial  services account placements and (iv) an increase in
revenue $0.5 million from legal  collections.  These  increases  were  partially
offset by (i) a decrease in revenue of $1.8  million  from  on-site  call center
management services for a major  telecommunications  company and (ii) a decrease
in revenue of $1.6 million from healthcare and institutional services.

Expenses. Salaries and benefits expense increased $3.7 million or 19.9% to $22.2
million  for the three  months  ended June 30,  2000 from $18.5  million for the
three months ended June 30, 1999.  This  increase is primarily the result of the
Company's service expansion in outsourced pre-charge-off management services and
telecommunications.

Telecommunications  expense  remained level at $1.2 million for the three months
ended June 30, 2000 compared to $1.2 million for the same period in 1999.

Occupancy expense increased $0.5 million or 44.7 % to $1.6 million for the three
months  ended June 30, 2000 from $1.1  million for the same period in 1999.  The
increase is the result of annual rent  escalations  and the  addition of two new
facilities in the fourth  quarter of 1999 and the first  quarter of 2000.  These
new facilities provide the needed capacity for future growth.

Other operating and  administrative  expense  increased $2.1 million or 60.6% to
$5.5  million for the three months ended June 30, 2000 from $3.4 million for the
same  period  in 1999.  The  increase  is the  result of the  Company's  service
expansion and parallel staffing costs.

Depreciation  and amortization  expense  increased $0.7 million or 29.5% to $2.9
million for the three  months ended June 30, 2000 from $2.3 million for the same
period  ended  June  30,  1999.   The  increase  was  primarily  the  result  of
depreciation  on capital  assets  acquired  subsequent to the second  quarter of
1999.

Restructuring  charge.  In order to reduce  costs and improve  productivity  and
asset  utilization,  the  Company  decided to  consolidate  and  reorganize  its
operations.  This  restructuring  plan was  formalized  by the end of the second
quarter  of  2000.  The plan  involves  the  Company  removing  itself  from the
directory assistance operations for a telecommunications  company, as it was not
considered  part of the core  business of the  Company.  In  addition,  the plan
involves  consolidation  of its collections  systems and  reorganization  of its
information   technology   operations   from  a  remote  location  to  corporate
headquarters.  Due to  reorganization  and shutdown of the directory  assistance
operations,  the plan includes the  termination of 172 employees.  All employees
were  notified as of June 30, 2000.  The plan also  includes the  relocation  of
certain information technology personnel.

The  Company   recorded  a  total  charge  of  $1.3  million  to  complete  this
restructuring,  included in the  restructuring  expenses.  These charges include
costs for severance and benefits to terminate  and relocate  employees,  and the
write-off of certain software and hardware.

Operating  (Loss)  Income.  Operating loss was $0.8 million for the three months
ended June 30, 2000, a decrease of $2.2 million or 159.2% from operating  income
$1.4 million for the same period in 1999. This decrease is due to an increase in
revenue of $5.9 million with  offsetting  increases in expenses of $8.2 million.
The  increase in  expenses  include (i) $0.7  million of start-up  expenses  for
expansion of  pre-charge-off  services  and (ii) $1.3  million of  restructuring
charges.

Interest  Expense.  Interest expense relating to the Term Loan Facility,  Senior
Notes and capital  leases was $3.5  million for the three  months ended June 30,
2000  compared to $3.1 million for the same period in 1999,  an increase of $0.4
million. This increase is the result of (i) an increase in interest rates on the
term loan facility,  (ii) borrowings  against the revolving  credit facility and
(iii)  interest paid on capital  lease  obligations  incurred  during the second
quarter of 2000.

Net Loss.  The Company  incurred a net loss for the three  months ended June 30,
2000 of $4.4  million  as  compared  to a net loss of $1.7  million  in the same
period of 1999.

Liquidity and Capital Resources

During the first six months of 2000, the Company's  continued growth resulted in
an increase in working capital requirements. To support this growth, the Company
purchased  approximately  $6.5 million of property and equipment  which includes
$0.7 million acquired through capital leasing.  These capital acquisitions along
with the additional working capital  requirements were financed by an additional
equity  investment  of $6.0 million from the  Company's  current  investors  and
borrowings of $8.2 million under the Revolving Credit Facility.

Cash used in operating activities was $1.2 million for the six months ended June
30,  2000 as compared to $2.7  million for the six months  ended June 30,  1999,
resulting  in a  decrease  in cash used of $1.5  million.  Net  working  capital
increased  by $7.0 million to $8.6 million in the six months ended June 30, 2000
as compared to $1.6 million at December 31, 1999. This increase is primarily due
to an increase in cash and cash  equivalents  for the six months  ended June 30,
2000 as compared to December 31, 1999. Net income before extraordinary items and
after adding back depreciation,  amortization,  non-recurring charges, taxes and
interest  (EBITDA)  increased  16% to $8.5 million for the six months ended June
30, 2000.

Cash used in  investing  activities  for the six months  ended June 30, 2000 was
$5.7 million as compared to $1.0 million for the six months ended June 30, 1999.
The Company's principal use of cash in investing activities during the first six
months of 2000 was for capital  expenditures,  primarily  for new  computers and
telecommunications equipment for the new facilities.

Cash provided by financing activities was $13.8 million for the six months ended
June 30, 2000  representing  $6.0  million of equity  contribution  from current
investors,  $8.2  million in  proceeds  from a  revolving  line of credit,  $0.3
million of repayments on long term debt and $0.1 million of debt issuance costs.
Cash provided by financing  activities was $3.3 million for the six months ended
June 30, 1999,  representing  $3.4 million in proceeds from a revolving  line of
credit and  repayments  of $0.1 million on the term loan  facility.

During the second  quarter of 2000,  the Company  negotiated an amendment to its
credit  agreement (the "Amended and Restated Credit  Agreement") that creates an
additional $6.0 million of borrowing  capacity and revises the cumulative EBITDA
and  related  financial  covenants  to  reflect  the  Company's  revised  EBITDA
expectations.  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,  liens,  and  asset  sales.  The  Company  was  in
compliance with the revised covenants as of June 30, 2000. The Company will have
to have a  significant  increase in EBITDA to achieve  third and fourth  quarter
covenant levels.

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,  the Revolving  Credit Facility and 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 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 six months ended June 30, 2000 and 1999 due to the uncertainty regarding the
realization of such benefits.

Year 2000

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.  During the second quarter of 2000, the Company
experienced   no   disruptions   in   critical   information    technology   and
non-information  technology  systems and  believes  those  systems  successfully
responded to the Year 2000 date change. The Company will continue to monitor its
critical computer applications and those of its suppliers and vendors throughout
the year 2000 to ensure  that any latent  Year 2000  matters  that may arise are
promptly addressed.

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, 1999.


<PAGE>


ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK




                                                     Long Term Debt
                                                Non-Traded Instruments
                                                  As of June 30, 2000
                                                      (In $000's)
<TABLE>
<CAPTION>

                                                                                                              Fair
                                    2000      2001     2002      2003      2004    Thereafter     Total      Value
                                   -------- --------- -------- --------- --------- ------------ ---------- ----------
<S>                                 <C>      <C>       <C>       <C>       <C>      <C>          <C>        <C>
Variable Rate:
    (1)  Term Loan Facility :         $687   $1,250    $1,250    $1,200   $17,500  $   --       $21,887     $21,887
           $  18.0 million            10.52%  10.52%   10.52%    10.52%    10.52%    10.52%
           $   0.4 million            12.25%  12.25%   12.25%    12.25%    12.25%    12.25%
           $   3.45 million           12.50%  12.50%   12.50%    12.50%    12.50%    12.50%
    (2)  Revolving Loan
           $ 8.2 million              12.00%     --       --        --        --           --    $ 8,228     $8,228

Fixed Rate:
    Senior Notes due 2008:           $  --     $  --    $  --     $  --   $   --   $100,000     $100,000    $73,000
    $100 million @ 10.25%                                                            10.25%

    Security Agreements               $ 23      $ 63    $  48                                     $  134      $ 134
                                     22.50%    22.50%   22.50%
</TABLE>


The Company's  primary risk exposure in the normal course of business is that of
interest rate risk. There have been no material changes in this type of exposure
during the periods presented.



<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/ Eric R. Dey
------------------------------------------------------------
Eric R. Dey
Chief Financial Officer

Dated:  August 14, 2000