What is the problem with my build, that wont allow me to stream.

[failingnotion]

Hi,

Spec:
CPU: i5-4670 3.4Ghz (not k)
GPU: HD5970 1GB.
RAM: 16GB

I want to stream live to twitch using OBS. While playing a game. I've tried all sorts of OBS settings and also tried Xsplit and Steams built in streaming. I cannot stream whatsoever without severe jittering lag. OBS says high encoding error. and steam just kicks me off after a minute.
I even tried lowering my stream quality to 240p. I'm under the impression that the problem is my CPU. But I did some research and read about people streaming 720p with no problem on much less

I have also confirmed with two friends Who have a i5-4670k and 4690k and Integrated Graphics can smoothly run 1080p streams with the same settings I've tried.

My CPU is only benched fractionally below those two CPU.

SO what am I doing wrong here? or is it just simply that my specific CPU can't handle encoding at all?
I also tried a variety of games from AA titles (Xcom2) to games like Super meat boy.

Edit: It also is not my internet, I have 75MB DL and 10MB Up and I can easily stream HD from both my xbox one and PS4 with no lag.

Update:
The computer started to lag even when I tried watching youtube. So I bought a new CPU cooler and when I went to replace it I discovered the old CPU stock fan had come loose. the new CPU cooler fixed my problems and allowed me to stream in 720p

 

[okcnaline]

The GPU. That's not going to even game at max settings. That's a HD 5970... xDDD

 

[failingnotion]

The CPU was over heating. a new CPU cooler fixed the lag and allowed me to stream.