Somehow it was fine during my playthrough, except that I wandered off to some higher level area, but then realized my mistake and went to a tamer one, maybe it's your case.
Also, one thing you need to make sure you are doing is constantly upgrade your gear item that was kickass at level 7 will be shit at level 10 except for maybe 1 or two specific items (which will become shit at level 11-12 anyway) and if you are at level 10 fighting level 10 enemies with level 7 gear, you will feel the pain.
Even common items from merchant can be enough to bump your own armor and damage considerably in case you were sticking to low level stuff.
After that, nothing a little tactics can't solve. You don't have to initiate every fight with your whole party stacked tight, it's a good way to get pummeled and some of the more difficult fights usually come up after some conversation where the intent of starting a fight is evident - you can control other party members to take good positions in with height advantage which will make things easier and then trigger the fight.
Combination of all the above should really fix most of the combat issues.
