I have one of my text boxes open and first I want to make sure that I'm on the journaling layer and that I have the move tool selected. Then I will go to my sidebar there to the right and find the "Character" Tool....although I called it the Font tool for a long time. If it is not on your sidebar then you can go to Window>Character and it will pop up in your screen.
Then what I'm going to show you is how you make your individual text lines closer together. You'll go to the spot that says auto (or where you set the lead) and you can adjust the point. I chose 18 for this one. You can play around with it. It will need to be different for different fonts.
Here you can see the the text is closer together. You can also adjust how close the individual letters are right below that first button (the tracking-I don't think they have this one in Elements). I use this one for some of the cursive fonts, it makes them look more attached. For this font I'm not going to change it. Now, this is where the tutorial is going to stop but play around with the "Character Palette" and you do lots of different things but these are the two things I use the most...that I never use to use before.
I also just found this-Adobe Photoshop Text Tutorial. It will tell you what all the different things do in the "Character Palette".
Here's a freebie that you can use to try out this tutorial. It's a circle text box with a few outlines and mask. Just click here to download. If you need a tutorial on how to use a text box I have one here.