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Having high level shields should get you through most missions while you focus on upgrading everything else. You will want to grind to Mk6 shields, they cost a hefty 2.1 mill but you will never need to buy shields again. Mk5 could work too if you don't want to grind as much, those are only 700k.
So when you upgraded your ship you also upgraded the enemies.
What I learned (with forum help):
1) Your ship doesn't matter, really.
2) What you put on your ship means everything. For example, you can take your Tennhausen clear to endgame, as long as you keep getting upgrades for your gear, you'll be fine.
3) The game doesn't really explain what the threat levels mean in practicality.
My advice is to go back to the first system, run your mission of choice and knock out Pirate Lords and Korian invaders until you have a disgusting pile of creds. Then, hop to the next system that isn't Extreme threat and make a run to the closest Station and start upgrading. Repeat, I know it isn't fun for a lot of people but it works.
I did this for a full set of Mk4 stuff (minus replacing my Viridian lasers) and can now take most missions in the second system no problem.
Another thing you can do is respond to distress signals, then hang around the edges of the battle and wait for the merchant ships to be destroyed. In the highest level system they are always carrying extremely valuable goods and equipment, and if you are quick you can rush in, tractor the dropped loot, then rush back out again before the hostile ships have a chance to fire on you.
If you try this, you must realize that you absolutely cannot fight anything, at least not until you start getting your upgrades. Any ship that gets close enough to fire on you will probably kill you in two or three hits. That is why you must have null grav boosters installed, so you can use them to escape if you get hit by a leech rocket. Once you have some credits, the first major purchase you should make is the highest level shields you can afford. That will make it easier to survive while you continue searching for salvage.
A high-risk strategy like this is not for everyone, but personally I find it very exciting to see how long I can survive in the highest level system with the starting ship and MK1 equipment. It's actually not as difficult as it might sound if you are cautious and observant.