Grunged
Make your text look like its beat up and worn by applying a simple grunge mask. This method will keep your text layer for optimal use.

Start out with your text on a white background.

Add a layer mask to your text layer.

Some quick notes about using layer masks.  When using layer masks, you can edit either the main layer or the layer mask.  Which one you are working on will be outlined in the layer menu.  The normal way to edit a layer mask is transparent to the user, in that changes made on the layer mask appear visually by the way they impact the main layer.  The concept is that black areas on the layer mask represent areas of transparency in the main layer.  To see the layer mask directly, click on it while holding down the alt key.

Here's the fun part.  With the layer mask selected use the Filter>Pixelate>Mezzotint... filter with the type set to long strokes.  Repeat this filter a couple times. Do it again with the type set to Course Dots.

Use a Gaussian Blur of 0.5 pixels to smooth out the grunge appearance some.