Create a new PSD document, enter the text you want, and here I use the impact font. You can define the size of the canvas and the font according to your preferences. Name the type layer as paper Text 1.
Copy the paper Text 1 layer to a layer, named Paper 2. Back to the paper Text 1 layer, add a shadow to it, and the parameters are set as follows:
Hide the paper Text 1 layer, click on the paper 2 layer, right-click, and convert text to shape.
Select all the letter shapes using the path selection tool, and then merge all the shapes by clicking on the Merge shape components (CS6 version, other versions click the merge button). Copy the paper text 2 layer to a layer of standby, named Paper 3.
Next we're going to create torn paper effects and you need to download these broken paper shapes. After installing, select all the text shapes in the text 2 layer with the Path selection tool, select the Custom Shape tool, right-click on the canvas, and select the appropriate shape from the pop-up menu.
Sets the path action to intersect the shape area so that the area of the drawn custom shape that intersects the text shape is preserved and the other areas are hidden.Classification: