Calmed down and paid up (7)
I believe the answer is:
settled
'paid up' is the definition.
'settled' can be an answer for 'paid' (thesaurus). I'm not certain of the 'up' bit.
'calmed down' is the wordplay.
I cannot quite understand how this works, but
'down' could be 'set' (similar in meaning) and 'set' is located in the answer.
This explanation may well be incorrect...
'and' acts as a link.
Can you help me to learn more?
(Other definitions for settled that I've seen before include "Colonised; decided" , "no longer an issue" , "Resolved; calm" , "Sank or came to rest" , "Took up residence" .)