As far as fear of physical confrontations go... I've gotta agree with all that's been said before. Some even said things for me, lol.
But before you go much further in your training... Ask yourself: If you had no other alternative... Could you seriously injure another human being? Could you maim another person if no other way was possible? If you had no other option, could you kill in self defense?
I'm not talking about the physical, actual action... but the mental side. Are you prepared for it? Could you live with yourself afterwards? This is another fear that must also be confronted. Just a heads up.
Don't get me wrong, though. Avoidance is the best policy, but...
Stuff happens... to paraphrase a popular saying.
But as far as training methods... Spar. Then spar some more. Then keep sparring. Give yourself time to recover from injuries, but keep sparring. It will keep you sharp. When I first started seriously training in martial arts I didn't like sparring. My first tournament as a yellow belt I came in second (nearly first) in a really good beginner men's division (lots of great competition). It was only due to the practice I hated so much. After getting a little ways a senior student took me under his wing and gave me some special training: We went outside in a kinda private backyard in our usual street clothes. Shin pads, cups, and the barest minimum of gloves only to keep our skin from breaking (literally used leather weightlifting gloves, virtually no padding on strikes). Two simple rules: Stay off the head and stay off the groin (accidents sometimes happen between kickers, so keep a cup on anyway lol). It really developed my sparring and fighting styles. (Note: Fighting style is nastier, going for quick ways to end fights. It's hard to safely practice that.) Key is to have a good degree of control before going on to this stage though, lol. Master never liked it, but we did it anyway. It's the most realistic sparring you can do. (I know for a fact Master did this back in his day as well, lol. He probably knows how bad someone could get injured.
You'll find yourself getting used to the shock of being hit. If you have a good partner that can increase the pressure without causing serious harm (more than a slight bone bruise is serious in my book), you may one day find that "normal" people don't hit very hard. A friend of mine was attacked by 3 guys and realized they weren't hitting as hard as we do in class... so he got up and beat the crap outta them. Until one of them pulled a gun... Fortunately, he was able to walk away from that situation. Had they not taken the coward's refugee, I'm certain they would've been stomped into the ground, lol.
And ALWAYS always ALWAYS try to spar someone better. Coming up in tournaments as an adult competitor I was often moved up in rank to get into a division. One of my most informative matches was against a 3rd degree blackbelt nearly 7 years younger than me (18yo vs 25yo). He was training under a grandmaster since he was a pup (dude is good REAL good). He is probably most responsible for my guard these days. He found a flaw in an old guard I used and picked it mercilessly. You will ALWAYS learn more from a loss. Never think about defeat in sparring as a loss. As long as you are alive, you can learn. If you ever go to sparring seminars try to spar the best guy there at least once. And talk to them! Don't just take a beating. Ask them how you can get better! If they are truly worthy of being called a martial artist they will help you improve.