What to do?

My friend who owns a great clothing shop,Gone Coco, has decided to sell a line of vegan shoes...she said she was inspired by my decision to weed out all the leather items in my wardrobe and replace them with vegan ones. I picked up a cute flat nonleather wallet while I was visiting her the other day. She is also a knitter and we swap books and patterns between us....but here is my dilemma....She gave me a wonderfully soft skein of wool/mohair handspun yarn - enough to make a pair of wristlets....
do I continue to use animal based yarns in my knitting or do I stop? My philosophy is choosing a vegetarian diet years ago and my new pledge to remove leather from my wardrobe is based on the conviction that I do not want to consume anything that caused an animal's death. But what about the mistreatment of animals in fiber production? Is it universally so? What to do...what to do...