I'm no longer licensed, but I have two thoughts:

1) A big portion of what passes for counseling is what (in my opinion) SHOULD happen between friends. So I make sure I am a good friend to my friends. I am not a value neutral friend. I am objective in my observations, but as a friend I might say "Dude, you should stop drinking so much." instead of "How do you feel about your drinking behaviors?"

2) But there is a limit. My time with my friends is NOT counseling. And if I see somthing that warrants some help, I first point out that it would be a mistake for me to even pretend to be their counselor, and then tactfully tell them what I'm seeing and they may be better off seeing a pro that isn't me. That's where I set a boundary and point to a path (and that I am on the path, but not as their counselor).

If they're MY friends, they'll hear that because they also don't want the relationship to be all weird. Does that make sense?

I think it's natural for friends to seek advice or help from friends - that's part of what a friendship is all about. But in a friendhip, you're free to express yourself in whatever way you want to because the person is a friend, not a client seeking professional help.

There are plenty of times I've told friends "It sounds like so and so needs a swift kick in the place it would do him the most good." Obviously, that's not something I'd say to a client, although I'd pay enough attention to my personal reaction to see that it wouldn't interfere with the counseling work.

If your friend expects you to be objective, you can simply give your unobjective reaction, and when he or she reacts to it, say "That's not something I can be objective about, you're a friend, not a client, and my relationship with you doesn't allow me to be objective about things that happen to you."

I've found that because people who end up being counselors are often people who have a knack for it in the first place, they're people that friends often turn to for advice or solutions to problems. That's one reason counselors need to establish clear boundaries. Not just for their friends, but for themselves, so they don't get caught in the "pseudo counseling" dilemma which is poor counseling as well as a poor friendship.

You can give good advice to a friend without entering into a counseling relationship, but the difference is that as a friend you're entitled to speak your mind a little more freely. Oh, yeah, and there's a lot less paperwork.

I'm a member of a dance troupe and have found that the members of the troupe often ask me for advice; they say that I'm level headed and have a lot of common sense. But I've never had the sense that any of them is looking for free counseling sessions, possibly because outside my counseling role I tend to be fairly direct and outspoken in my views and if someone asks my opinion, I'm straightforward. I try not to be offensive, but I don't mince words, and often my opinions as a friend are things that would be highly inappropriate for a counseling session.

If push comes to shove, you can always fall back on the old counseling trick of "noticing" and say something like,
"I notice when you ask me for advice you seem offput if I give you an unvarnished opinion." and then let it sit there and let your friend respond to it. That way you've opened up a dialog and you can come to some sort of resolution about the boundaries of your friendship. If your friend decides he or she can't be your friend if you're not willing to enter into a counseling relationship with them, you're both better off parting ways.

If you were a car mechanic, your friends wouldn't expect you to fix their car for free (although they might ask for advice on that weird noise the engine keeps making) but with counseling sometimes it's not as clear cut as "Gosh my engine is making this strange noise, do you think you could listen to it and tell me if you think it's serious or not?" because as someone else mentioned, the rudiments of counseling are present in most friendships, so the line can become blurred unless we watch for it carefully.

Also keep in mind that plenty of other professions end up with similar dilemmas. My pediatrician swears he can't go to any social function without several people asking him to diagnose various aches and pains - I have a friend who is a hair dresser and is constantly being asked to cut, color, or style hair for no charge from friends. (She has no problem providing services at someone's house for pay, but is always being asked to do it for free).

Good luck with setting some boundaries and finding friends who are willing to respect them!

You are not alone. Naturally, if we are drawn to the field, we were probably already counselors for our friends to some degree. However, once people realize that we are studying or practicing counseling, they seem to be more apt to seek counseling. I have found myself, on more than one occasion, realizing halfway through a conversation that it seems to be one sided or that I am giving "professional" expertise on the couple dynamics of friends. It is important for us to be mindful of this fact in our friendships, so they do not become unbalanced.