#allystemp

first, make all your words separate layers so you can move and rotate them individually with the free transform tool. you can group words like i did to add variety.

next create a new layer and make sure it's under all of your text layers.

once you have your empty layer, select the polygon lasso tool. you'll be making rough outlines around your words - they look best if they're not perfectly symmetrical.

click around the word until your rough rectangle shape is connected (i added a gray bg layer temporarily so i could see better, but that's completely optional).

right click in your canvas, select fill. in the popup, the only thing you need to change is the 'contents' drop down at the top.

click 'ok' and your shape should be filled. right click again to deselect and repeat until all the words have their own little backgrounds.