The beauty of walking with the Lord is that He not only declares us to be new creatures, but He also changes our vile nature into something beautiful. It is wonderful for God to call us friends, but it is even more beautiful to be on friendly terms with God (from our point of view). As we walk with God, we have the reassurance that our past wrongs are forgiven and the iniquities we struggled with is not only forgiven but also forgotten. This experience with walking with the Lord positively affects our relationship with our friends on the earth, as we learn how to reconcile and improve our relationship with God.
Hebrews 10:14 For by one offering he hath perfected for ever them that are sanctified. 10:15 [Whereof] the Holy Ghost also is a witness to us: for after that he had said before, 10:16 This [is] the covenant that I will make with them after those days, saith the Lord, I will put my laws into their hearts, and in their minds will I write them; 10:17 And their sins and iniquities will I remember no more.