First, some verses to consider... 
"The  Lord, the Lord God compassionate and gracious, slow to anger and  abounding in loving kindness and truth who keeps loving kindness for  thousands who forgives iniquity, transgression and sin."--Exodus 34:6   
Solomon said, "It is a man's glory to overlook a transgression,
"Man is never more like God than when he forgives--Proverbs 19:11
Now hope does not disappoint, because the love of God has been poured out in our hearts by the Holy Spirit who was given to us.--Romans 5:5
Thoughts on Forgiveness...some paraphrased from John MacArthur.
Our God is the God of forgiveness...that is who He is.  We are to resemble Him...we are to imitate Him.  Forgiveness deflects self-pity, pride and shows mercy. Forgiveness is divine.  We are never more like God than when we forgive. That should be characteristic of every one of us. Forgiveness is the most noble act that one sinner can do for another sinner. In our heart is love and humility, not a wounded ego, not vengeance, not bitterness no matter what anybody does to us, and we hold there a loving, eager, anxious longing to forgive when that sinner comes to seek the forgiveness we offer. This is Christlike. This is Godlike.  We forgive to restore fellowship, Forgiveness produces mercy, joy, love, fellowship, purity.
"Be  kind to one another, tender hearted...here's the same  principle...forgiving each other just as God in Christ also has forgiven  you."
In Colossians chapter 3,  He says, "We are to bear with one  another and forgiving each other whoever has a complaint against anyone  just as the Lord forgave you, so also should you."
Now if you pull all of these together you get the very clear idea  that God is a forgiving God and you are to be forgiving people. That's  basic. In fact, God has forgiven you, so you should forgive. That's one  principle. The other one is God will forgive you if you do forgive.
And so, on the one hand the Scripture says God has forgiven you  therefore forgive, and on the other hand the Scripture says if you don't  forgive God won't forgive you and you will have violated the  relationship, the fellowship that you could enjoy with God.
The Lord has forgiven all of us all of our sins and therefore Paul  says we should forgive each other. And if we don't, we're going to be  chastened by God. That's plain and simple the message.   How often are we to forgive...endlessly Scripture teaches. 70 x 7...Matthew 18.  Jesus goes on in the 18th chapter of Matthew to speak a parable that illustrates His point.
The next illustration is taken directly from a study John MacArthur did on forgiveness. I loved what he says here.  
"And  then He tells a parable that makes the point.  And it's a parable that  depicts God and the sinner.  The king in the parable is God.  The man  who owes the big debt is the sinner.  "The Kingdom of Heaven  then...verse 23...may be compared to a certain king...that's God...who  wished to settle accounts with his slaves. And when he had begun to  settle them there was brought to him one who owed him 10 thousand  talents."  That's an unpayable debt, massive debt he could never pay.   "Since he didn't have the means to repay his lord commanded him to be  sold along with his wife and children and all that he had and repayment  to be made."  The debt was too much to pay but if all these people were  sold into slavery at least the king could get something.  The man had  obviously defrauded him.  Probably one of those servants who was a tax  collector and who had charge over great sums of money and had defrauded  the king and now had lost it all and had no means to pay.  And he said,  "Well, if I can't get what I owe, I'll get what I can.  So sell all of  his family into slavery and at least give me that."
"The slave therefore...verse 26...falling down prostrated himself  before him saying, Have patience with me and I'll repay you everything."   He had a right heart, he had a willing spirit even though he couldn't  have done it, his intention was right.  "The lord of that slave felt  compassion and released him and forgave him the debt."  That's God and  the sinner. When the sinner comes before God and is convicted about his  unpayable debt, he's convicted about his sin and God tells him you have  no means to pay me, you should be sent to hell, you should pay whatever  you can pay even though you could never pay me what you owe me.  And  that's what hell is, by the way, it's spending forever paying what you  could pay which never does pay the debt you fully owe because you've  affronted God so greatly as one who rejected His Son.
But this king is compassionate and when he sees the man's  willingness, he forgives him the debt.  Now here comes the point.  "The  slave went out," he had just been forgiven, "he found his fellow slaves  who owed him a hundred denarii, one of them," that's a hundred days  wages, not a major debt.  "He seized him, began to choke him, saying,  Pay back what you owe." And the people who would be listening to Jesus  tell the story at this point would be absolutely outraged.  "So his  fellow slave fell down and began to entreat him saying, Have patience  with me and I'll repay you.  He was unwilling, however, but when...threw  him in a prison until he should pay back what he owed."
This is unthinkable.  Here is a man who has been forgiven a massive  debt who turns right around and won't forgive somebody a small debt.   "When his fellow slaves saw what had happened, they were deeply grieved  and came and reported to their lord all that had happened.  Then  summoning him his lord said to him, You wicked slave, I forgave you all  that debt because you asked me.  Shouldn't you have had mercy on your  fellow slave even as I had mercy on you?"  And there's that principle.   You want mercy from God, you show mercy.  You want forgiveness from God,  you be forgiving.  "And his lord moved with anger handed him over to  the torturers until he should repay all that was owed him.  So shall My  heavenly Father also do to you if each of you does not forgive his  brother from your heart."
Boy, what a story!  What a story!  That parable is so severe that  there are many people who conclude that the principle Jesus teaches  couldn't possibly apply to a Christian.  But it does.  Because the man  who wouldn't forgive the slave was a forgiven man, that is God had  already forgiven him, he is a child of God.  But what it tells us is  that the Lord will sometimes deal very harshly with His own children who  will not forgive someone else, whom the Lord loves He disciplines, and  every son He scourges, Hebrews 12 says.  And one of the reasons He  disciplines and scourges us and makes life very trying and difficult is  because we have an unforgiving heart towards someone.  Christians then  are to forgive.  That is the principle taught in Scripture, that is the  principle illustrating the character of God in the parable of the  prodigal son, and that is the principle illustrated in this parable to  be true of every believer.  This is a matter, I think, not only of  blessing and fellowship with God, but it's also a matter of the  assurance of salvation."
We should also forgive immediately.  I love what Corrie Ten Boom has said on this subject:
"A piece of good advice is to forgive anyone immediately--and I mean immediately--if they say or do something against you.  Then the Devil won't have a chance to keep a shadow in your heart."  I love that.  Lord keep our hearts from shadows.  We are to be His lights in the world and shine His love to the world around us which is dying without Christ.  There really isn't time for our offenses.  
The love of God shed abroad in our hearts is stronger than any offense  or hatred we might encounter.  God's love forgives...Surrender to it and  allow it to succeed in your heart.  God's love is the answer.
"We need not climb up into heaven to see whether our sins are forgiven.   Let us look into our hearts and see if we can forgive others.  If we  can, we need not doubt that God has forgiven us." Someone has said  "He who demands mercy and shows none ruins the bridge over which he  himself must pass."
 
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