how do you know when it is time to change brake pads

Anything less than 1/8" should be replaced IMHO.
On most Hondas when it (inside pad usually) gets down to the indicator it goes SQUEEEEEEE every time you back up. That's assuming your caliper slides don't bind up, that both wear evenly, etc. Best to keep an eye on them every time you rotate the tires (every 6k for me).
This is the best advice here. The 1/8" refers to the thickness of the pads, not including the backplate. In other words the non-metal pad, not the metal backplate.
It is a job you can do yourself if you get a knowledgeable friend.
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