I have been hammock camping on and off for the past year by just using a sleeping bag with a pad underneath me in the hammock. Is there anything wrong this?

Usually every morning I will find both moisture between the bottom of my sleeping bag and my pad. Is there anyway to help fix this? Why is this doing this?

Also, I am interested into looking for any other options as well (underquilts, etc.) but my money is limited. Any suggestions would be great!

Thanks guys.
Chris