This sounds like a gear problem to me. I have never needed to do stat maxing or change the difficulty slider. Right now I'm level 22 (I think, it's been a while since I've played) and I have been tearing through opponents. You just need to find gear (or make it) to help you survive. It pays to enchant your own gear. I'm on the 360 so I haven't had any mods besides some DL'ed content from the marketplace. So my best piece of advice would be to practice skills that will help you survive, and get some better gear.
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"That's why you're the judge and I'm the law-talking guy."
Lionel Hutz
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