The Application Process

I am in the thick of my GMAT preparation and I was wondering if I could get your opinion on my situation. I began the studying process a little over two months ago and it is safe to say I greatly underestimated the time commitment to getting my desired GMAT score (640-700). I am currently getting 540-560 on my practice tests and am scheduled to take it this Saturday (12/5). Although things have been clicking more over the last few days, I do not feel I am ready. My initial thought when scheduling this date was to take the test and if I did well, I would still have a month to get my essays and recommendations together (although I am realizing this may take longer) for the Round 3 deadline (Jan 8) to my preferred business school for the program beginning Fall 2016. I am going to reschedule my test but wanted your opinion on when you thought I should reschedule it. I can push it back two weeks, leaving me just over two weeks to get my application in, or can push it back further for more prep time. Do you think there is any possible way to get my essays and recommendations together in two weeks? Is it even worth applying round 3 with a rushed application? Or should I push it back further and really be ready for the test and have more time for my rec's and essays and focus on applying for Summer 2017 or Fall 2017?

Any insight would be very helpful!