Demi Lovato in great spirits after rehab

Demi Lovato is in great spirits following her 10-week stint in rehab. The 18-year-old singer-and-actress — who left an unnamed Chicago-based clinic last week after being treated for “emotional and psychological issues” — is said to be taking her recovery very seriously.

“Demi is in great spirits, a great mood,” a source said.

“Her treatment really seems to be working and it isn’t an act, she’s taking her recovery very seriously.”

Last month, the Disney star — who entered rehab voluntarily at the beginning of November last year after an incident in which she allegedly punched backing dancer Alex Welch — reportedly settled her dispute with the dancer by giving her a small sum of money in compensation.

“It’s not even close to $100,000. Way, way less than $100,000,” a source said at the time.

“Alex never expressed dissatisfaction with the settlement. I think she was just ready to just move on. She’s happy and moving past the situation and moving forward positively.”