Most defiantly get a better PSU. That is a Best Buy only cheapy with a very low efficiency especially under load. Your system will pull 300-350w so a good quality 450-550w PSU would do fine and give you plenty of headroom.
Is it bad to run with a low psu can my parts go bad faster if i do?
Absolutely a poor PSU can take the rest of the computer with it. Ontop of the poor efficiency your 12+ rails are on the low side (14a and 15a) so just upgrading your GPU could send you over the amps it can provide.