Paid up, and relaxed (7)
I believe the answer is:
settled
'paid' is the definition.
(thesaurus)
I don't understand how the rest of the clue works.
Can you help me to learn more?
(Other definitions for settled that I've seen before include "Put down roots; decided" , "no longer an issue" , "Established" , "Came down; resolved" , "Colonised; decided" .)