I've been playing Morrowind recently and after a long time of getting adjusted to it I love it. However I am having problems with the quest that involves killing all the members of the Camonna Tong at the council club. How do I do it any tips or tricks because I'm still fairly low level. I am a Breton mage

Frenzy, so they attack you, and you don't get charged with a crime. Or, if your speechcraft is high enough, Taunt them into attacking. (High Speechcraft can be valuable in this game.)

The two who are alone, upstairs and downstairs, can be taken on separately. In the room with the group, you can limit the pile-on effect by positioning yourself behind a table before provoking the nearest one. They'll have trouble getting to you.

First of all, cast Mark spell (or use a potion or scroll or item with that effect) at the Moonmoth fort, next to Larrius Varo. After the bloodbath is done you can Recall to that position and talk to him so that you will isntantly get your name cleaned after the thorough Cammona Tong cleaning. If you have got enough gold, you stock on aoe damage scrolls (but since they are Dunmer, non-fire spells, like Drathis' Winter Guest and Inas' Chastening) and use them at your hearts pleasure at nicely stacked enemies. Usage of Shield and Summon spells and items is also advised to keep you up while you are at it freezing them to death and incinerating with lightning; same goes for placement that glargg has suggested.

I like to do the bloodbath quest...the bloody way

If the fight's too stacked for you, glargg's advice is more befitting, take down the loners, infuriating them beforehand, later turning to the others, dishing out damage en masse with scrolls. They are available to low-lvls and shouldn't be that expensive.

You could also consider coming back when you're a higher level. Unlike the later games Morrowind is not scaled so putting a quest off until your character has gained a few levels is a valid strategy.

Yeah, coming back later is probably a good call. If you really want to knock it out early, acquire a few scrolls of summoning. It can even be lower level summons like skeletons and scamps. Just give them something to hit that isn't you while you attack them from behind.