Question / Help FPS dropping during League of Legends Stream?

[MinaGlaca]

So I apologize in advance if I'm missing anything, as this is my first post on forums and I am extremely new to OBS (and not that computer savvy).

So what happens is when I stream, my LoL FPS "drops." The FPS is still around normal, but gameplay feels choppy and "laggy." I'm wondering if it's just my computer or my OBS settings (as I don't know what I should do to change my settings.)
So first with Specs (Hopefully this is all I have to post).
Processor: Intel(R) Core (TM) i7-3770 CPU @ 3.4GHz (8CPUs), ~3.4Hz
Memory: 16 GB RAM (It says 16384 MB, used a converter on google)
OS: Windows 8.1 64-Bit (6.3, Build 9600)
Chip Type (Assuming this is graphics card): GeForce GT620
Upload Speed (By Speedtest.net): 5.85 Mbps
Download Speed: 33.75 Mbps

Log File: http://pastebin.com/aBJRwjLJ

OBS Settings:
Encoding: http://i.imgur.com/w7PVdUV.png
Video: http://i.imgur.com/x9HJhGO.png
Advanced: http://i.imgur.com/XDD7OPW.png

Since this is my first time using OBS, what settings should I change, and what should I do?
I apologize for the long post and a lot of links. Thank you so very much!

 

[Krazy]

Your graphics card isn't super awesome, and OBS needs a decent amount of GPU power to function. I would suggest downscaling to 1280x720, and seeing if that helps. If not, you may have to downscale more and/or turn down graphics settings in game.

Sidenote: You'll want to use at least 1500 bitrate for 720p30fps LoL streaming.

 

[MinaGlaca]

Thank you very much! I will try to do what you wrote.