Rav Avigdor Miller on Fault Finding
Q:
What can a person do if he’s always focusing on his own faults and as a result he feels downhearted?

A:
If you’re a person who thinks of his own faults, you should be proud of yourself. You shouldn’t feel downhearted. If you know you have faults, then you’re a righteous person.

The trouble is when you don’t know you have faults – that’s the trouble! But if you really think you have faults, then Hakodosh Boruch Hu loves you. Anybody who recognizes his own chesronos, then Hakodosh Boruch Hu considers him a tzaddik. So this is just another case where people blame themselves for having good middos.