The verse above admonishes that you own up when you do something wrong against your brother or sister. It's not talking about going to them to confess all your sins, as many have erroneously assumed; rather, it means being humble enough to accept your fault.
The Amplified version puts it this way, "Confess to one another therefore your faults (your slips, your false steps, your offences, your sins)...." Note that when it says "your sins", it's not referring to sins against God; it's talking about the person you offended - he's the one to forgive you. So, always be quick and gracious to acknowledge and accept your wrong when you err against your brother or sister in the Lord. When you live like this, there'll be peace in your heart, and in your life, because this is God's will.
Likewise, when you're offended, reach out to the offender; don't wait for him or her to come and apologize to you before you forgive. Don't hold a grudge; it doesn't mean you're being naive or unduly indulging that one who has offended you; it simply shows the excellence and nobility of your character.
God doesn't brood over your wrong or hold it against you, so why should you brood over the wrong done to you by someone else, and let it linger? Don't do that. Forgive quickly. If you wrong anyone, accept your faults, and if you're wronged, be generous with forgiveness. It'll bring beauty to your life, as it reveals the honour of your personality.