iTunes local backup encryption vs iCloud backup

Hello!

Long, long time ago I have chosen to encrypt local iOS backup for both my iPhone and iPad in iTunes. However, sometime after iCloud rollout and "Cut the cord" feature implementation, I have changed that setting to iCloud backup.

As a result, in iTunes I have two options checked: to backup my devices using iCloud and to encrypt local backup (option for local backup is obviously not selected).

My problem is that I have forgotten my encryption passwords. I do remember my iCloud login and password though. Now suppose something wrong happens to my iPhone - would I have any problems or issues restoring it from iCloud backup?

Thanks in advance!

 

Phew, good to know that I won't have any trouble

However, I cannot disable the encrypt feature as I need to provide the old password. Is there any way around it? Like, remove those backups manually and make iTunes think I never wanted it to encrypt them?

 

I don't have it in my Keychain

What would happen if I were to simply delete it from iTunes folder? (I suppose I can find that backup somewhere) Would iTunes go crazy and the sky would fall on my head? I don't really care about the contents of that backup - my current backup is in iCloud. I just would feel better if I had control over my local backup.