In this great tutorial you will see how to make an horrifying text effect in Adobe Photoshop

1.
Start by selecting your favority text font, I thought Kristen ITC was suitable for this effect.
Right click the text layer in the layers panel and choose rasterize layer.

2.
Now you need to zoom in on each letter and grab the smudge tool, with a strength at about 60 percent, drag out some spikes in all direction as shown below.

3.
Now in a new layer, with the line tool draw a horizontal line on top of the text as shown below, then go to filter -> blur -> motion blur and blur it as illustrated below.

4.
In the layers panel make a copy of the line to make it brighter, then hold down ctrl and select both layer, right click and choose merge layers.
Double click the line layer to get to the layers style panel, and give it settings as below.

5.
Make a copy of the layer and place it under the text.
Now your image should look something like this.

6.
Make a copy of the text layer, in the layers panel place it under the text layer.
Go to filter -> blur -> motion blur and blur it as shown in the image below.

7.
Now double click the normal text layer to get to the layers style panel and give it settings as below.